If the price in a market is above its equilibrium level, there will be a:
A) surplus and downward pressure on price.
B) surplus and upward pressure on price.
C) shortage and downward pressure on price.
D) shortage and upward pressure on price.

Question

Quizplus · Accepted Answer

When the price is above the equilibrium level, the quantity supplied exceeds the quantity demanded, creating a surplus. This surplus leads to downward pressure on the price as sellers try to sell their excess goods.

If the Price in a Market Is Above Its Equilibrium