FIGURE 3-3 Refer to Figure 3-3.At a price of P₁ there is excess ________ in the market for X and pressure for the price to ________.

Question

Quizplus · Accepted Answer

At a price above equilibrium (P₁), there is excess supply in the market for X, which means that there are more units of X supplied than buyers are willing to purchase. This excess supply puts pressure on the price to fall as suppliers compete to sell their goods. Therefore, the correct choice is A - supply; fall.