Which of the following statements describes how a price-change in a purely competitive market would eliminate the surplus of an agricultural commodity?

Question

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In a purely competitive market, a decrease in price would lead to an increase in quantity demanded (because consumers are more willing to buy the product at a lower price) and a decrease in quantity supplied (because producers are less willing to supply the product at a lower price). This adjustment helps eliminate the surplus by encouraging consumption and discouraging production.

Which of the Following Statements Describes How a Price-Change in a Purely