Which of the following is an expected reaction to a surplus?

Question

Quizplus · Accepted Answer

All of the options are expected reactions to a surplus in a market. A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price. To eliminate the surplus, sellers may lower prices (A), which can lead to a decrease in the quantity supplied (B) as less efficient producers reduce output or exit the market, and an increase in quantity demanded (C) as consumers are attracted by the lower prices.

Which of the Following Is an Expected Reaction to a Surplus