Suppose the equilibrium price of oranges is $2.00 per kilogram. If the actual price is above the equilibrium price, a

Name: Suppose the equilibrium price of oranges is $2.00 per kilogram. If the actual price is above the equilibrium price, a
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Question

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When the actual price is above the equilibrium price, a surplus of oranges exists because suppliers are willing to sell more oranges than consumers are willing to buy at that price. To eliminate the surplus and restore equilibrium, the price will fall, not rise.

Suppose the Equilibrium Price of Oranges Is $2