Definition of «downward pressure»

The term "downward pressure" refers to a force or influence that causes something to decrease, decline or go down. In economics, it is used to describe a situation where prices are forced lower due to an increase in supply and/or decreased demand. This can happen when new producers enter the market, increasing the overall supply of goods or services, causing prices to drop as suppliers compete for customers. Similarly, if there is a decrease in consumer demand for a product or service, this too can create downward pressure on prices, as sellers must lower their asking price to attract buyers. In summary, "downward pressure" refers to any external force that causes something to decline or go down.

Sentences with «downward pressure»

  • More aggressive distribution will likely put downward pressure on prices. (morpheustrading.com)
  • Many sellers are intimidated when there are distressed properties for sale in the area or foreclosures putting downward pressure on prices. (allisonmeehan502.realtor)
  • Increasing numbers of foreclosures and the economy's failure to produce jobs will likely exert downward pressure on home prices and home sales for some time to come, despite record low mortgage rates. (ourvalleyhomes.net)
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