If there is a surplus in the market, market forces will drive the quantity supplied to________ and the quantity demanded to _________ .

Question

Quizplus · Accepted Answer

If there is a surplus in the market, it means that the quantity supplied is greater than the quantity demanded. In order to eliminate the surplus, suppliers will lower the price (decrease quantity supplied) to encourage more demand, while buyers will take advantage of the lower price to increase their purchases (increase quantity demanded). Therefore, market forces will drive quantity supplied to decrease and quantity demanded to increase, resulting in a new equilibrium.

If There Is a Surplus in the Market, Market Forces