If the price of a good exceeds the competitive equilibrium price, then:
A)consumers purchase more than the competitive quantity.
B)firms produce more than the efficient quantity.
C)firms produce less than the efficient quantity.
D)producers sell more than the competitive quantity.

Question

Quizplus · Accepted Answer

When the price of a good exceeds the competitive equilibrium price, firms are incentivized to produce more than the efficient quantity, leading to an oversupply in the market.

If the Price of a Good Exceeds the Competitive Equilibrium