A surplus currently exists for a product called widgets. In a free market system, the government must step in and buy any widgets that consumers do not buy in order to eliminate the surplus and establish equilibrium.

Question

Quizplus · Accepted Answer

In a free market system, the government typically does not intervene to buy or sell goods. The market forces of supply and demand are left to establish equilibrium on their own without government interference. Therefore, the surplus of widgets would likely be resolved through market mechanisms such as price adjustments or shifts in demand rather than government intervention.

A Surplus Currently Exists for a Product Called Widgets