If price is above the equilibrium value,then
A) producers hope that buyers will want more in the future.
B) buyers are unhappy because they are unable to find the good for sale.
C) producers find their inventories growing and will start to cut price.
D) neither buyers nor sellers have an incentive to alter their behaviour.
E) the government must enforce price controls.

Question

Quizplus · Accepted Answer

When the price is above the equilibrium value, it means that the quantity supplied exceeds the quantity demanded. This leads to producers having unsold inventories, which they ideally should sell off. As a result, they may begin to cut prices to reduce their stockpiles and bring them closer to equilibrium levels.

If Price Is Above the Equilibrium Value,then