If there is a surplus at a given price,then

Question

Quizplus · Accepted Answer

If there is a surplus at a given price, it means that the quantity supplied exceeds the quantity demanded at that price. This suggests that the price is higher than the equilibrium price, where the quantity demanded and supplied are equal. The surplus will cause producers to lower prices in order to sell their excess supply, which will eventually lead to the market reaching a new equilibrium with a lower price.

If There Is a Surplus at a Given Price,then