Suppose there is currently a surplus of wheat on the world market. The problem of excess supply may be removed from the market by:
A) lowering the market price.
B) shifting the supply curve leftward.
C) shifting the demand curve leftward.
D) Both A and B are plausible actions.

Question

Quizplus · Accepted Answer

Lowering the market price can help clear the surplus by making wheat more attractive to buyers, thus increasing quantity demanded. Shifting the supply curve leftward, by reducing the quantity of wheat available, can also help balance the market by aligning supply more closely with existing demand.

Suppose There Is Currently a Surplus of Wheat on the World