Excess supply will result in suppliers prices, which encourages demanders to demand .

The correct words for the blank spaces are: lowering; more.

Explanation:

In case firms have an excess of supply, they will rather sell their products at a lower price than keeping them stored for loss. According to the supply and demand theory, if the prices decrease, so will the quantity supplied but the quantity demanded will rise.

7.50%

Explanation:

The computation of the rate of return is shown below:-

Where

Number of year = 20

Present value = -$2,550,000

PMT = $250,000

Future value = $0

interest rate = 7.4929%

or

= 7.50%

For more clarification please find the attachment to reach out to the rate of return in which proper formula is to be shown for finding out the rate of return