When a surplus exists in a market, the actual price will begin to decrease.

Question

Quizplus · Accepted Answer

When there is a surplus of goods in a market, it means that there are more goods available than consumers are willing and able to purchase at the current price. In order to sell off the surplus, sellers will have to lower the price to incentivize buyers to purchase more. Thus, an actual reduction in price is a commonly observed outcome when a surplus exists in a market.

When a Surplus Exists in a Market, the Actual Price