If there is a surplus of a good in a free market, then it is expected that:
A) the supply curve will shift to the right.
B) the price in the market will fall.
C) the quantity supplied will increase.
D) the demand curve will shift to the left.

Question

Quizplus · Accepted Answer

When there is a surplus of a good in a free market, it means that the quantity supplied exceeds the quantity demanded at the current price. As a result, sellers will lower their prices to clear the excess inventory, leading to a fall in the market price. This adjustment process continues until the market reaches equilibrium, where quantity supplied equals quantity demanded.

If There Is a Surplus of a Good in a Free