The following question are based on the following diagram:

-In the diagram,movement toward equilibrium would cause the

Question

The following question are based on the following diagram:
 
-In the diagram,movement toward equilibrium would cause the

Quizplus · Accepted Answer

In a market, if the actual price is above the equilibrium price, the quantity supplied will be greater than the quantity demanded, leading to a surplus. To move toward equilibrium, the price would need to decrease. This decrease in price would cause the quantity supplied to fall (as producers are less willing to supply at lower prices) and the quantity demanded to rise (as consumers are more willing to purchase at lower prices), thus reducing the surplus and moving the market toward equilibrium.

The Following Question Are Based on the Following Diagram