The market system automatically corrects a surplus condition in a competitive market by
A) raising the price of the commodity in question while increasing the quantity demanded.
B) raising the price of the commodity in question while decreasing the quantity demanded.
C) reducing the price of the commodity in question while increasing the quantity demanded.
D) reducing the price of the commodity in question while decreasing the quantity demanded.

Question

Quizplus · Accepted Answer

A surplus condition in a competitive market leads to a reduction in the price of the commodity. This lower price makes the commodity more attractive to consumers, thereby increasing the quantity demanded.

The Market System Automatically Corrects a Surplus Condition in a Competitive