As long as the actual market price exceeds the equilibrium market price, there will be:
A) downward pressure on the market price.
B) upward pressure on the market price.
C) no purchases made.
D) Both A and C are correct.
E) Both B and C are correct.

Question

Quizplus · Accepted Answer

When the actual market price is above the equilibrium price, there is a surplus of goods, leading to downward pressure on prices as sellers try to clear their excess inventory.

As Long as the Actual Market Price Exceeds the Equilibrium