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

Question

Quizplus · Accepted Answer

When the quantity supplied exceeds the quantity demanded, it creates a surplus in the market. In order to get rid of the excess supply, sellers are forced to lower the price of the cars. As a result, the price of cars will decrease until it reaches a level where the quantity demanded equals the quantity supplied.

Suppose That the Quantity Supplied of Cars Exceeds the Quantity