If there is a surplus of a good, the quantity demanded is ________ the quantity supplied, and the price will ________.

Question

Quizplus · Accepted Answer

If there is a surplus of a good, it means that the quantity supplied is greater than the quantity demanded. When there is a surplus, sellers will try to lower the price in order to sell their excess inventory, which will cause the price to fall. On the other hand, if there was a shortage, the quantity demanded would be greater than the quantity supplied, and sellers would be able to raise the price to increase their profits.

If There Is a Surplus of a Good, the Quantity