Assuming that price is above the equilibrium price, which of the following is correct?
A) There will be upward pressure until the price reaches the equilibrium price.
B) There will be downward pressure until the price reaches the equilibrium price.
C) There might be upward or downward pressure on price.
D) There will be no pressure on price.

Question

Quizplus · Accepted Answer

When the price is above the equilibrium price, there is a surplus of goods, leading to downward pressure on the price as sellers reduce prices to clear their excess inventory, moving the price towards equilibrium.

Assuming That Price Is Above the Equilibrium Price, Which of the Following