If a surplus of a product currently exists in the market,

Question

Quizplus · Accepted Answer

If there is a surplus of a product in the market, it means that there is an excess supply of the product compared to the demand for it. This indicates that the quantity supplied exceeds the quantity demanded at the current price. As a result, producers are likely to lower prices to try and sell more of the product, which should eventually reduce the surplus and bring the market back into equilibrium.

If a Surplus of a Product Currently Exists in the Market