When the market price is above the equilibrium, the price will increase over time.

Question

Quizplus · Accepted Answer

When the market price is above the equilibrium price, there is an excess supply of goods or services, as sellers are willing to sell more than buyers are willing to buy at that price. This puts downward pressure on the price, and over time, the price would tend to decrease towards the equilibrium level, where supply equals demand. Therefore, the statement is false.

When the Market Price Is Above the Equilibrium, the Price