Suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza.We would expect that:

Question

Quizplus · Accepted Answer

When the quantity supplied exceeds the quantity demanded, there is an excess supply or surplus of pizza in the market. To sell the excess supply, sellers will have to lower the price of pizza, which will encourage buyers to purchase more pizza and bring the market towards equilibrium. Therefore, we would expect the price of pizza to decrease in this situation.

Suppose That the Quantity Supplied of Pizza Exceeds the Quantity