If the current market price is above the equilibrium price, then:

Question

Quizplus · Accepted Answer

The equilibrium price is the price at which the quantity demanded equals the quantity supplied. If the current market price is above this equilibrium price, it means that the price is too high and the quantity supplied exceeds the quantity demanded. This creates a surplus in the market and suppliers may have to lower the price to sell their goods, bringing the market back to equilibrium.

If the Current Market Price Is Above the Equilibrium Price