The market equilibrium price for widgets is $18.The current price for a widget is $25.In the market for widgets there is

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Quizplus · Accepted Answer

When the current price is above the equilibrium price, it means that the quantity supplied exceeds the quantity demanded, creating a surplus. This surplus puts downward pressure on the price, encouraging it to fall towards the equilibrium. As the price decreases, the quantity demanded typically increases because consumers are more willing to buy the product at lower prices.

The Market Equilibrium Price for Widgets Is $18