If the price of a good is above the equilibrium price,then
A) the government needs to set a higher price.
B) firms,dissatisfied with growing inventories,will raise the price.
C) consumers,wanting to ensure they acquire the good,will bid the price lower.
D) the government needs to set a lower price.
E) firms,dissatisfied with growing inventories,will lower the price.

Question

Quizplus · Accepted Answer

When the price is above equilibrium, there is a surplus, leading firms to lower prices to clear excess inventory.

If the Price of a Good Is Above the Equilibrium