The market price for a product will fall when there is a surplus until:
A)the quantity demanded exceeds the quantity supplied. The market will then be in equilibrium.
B)quantity demanded equals quantity supplied. The equilibrium price will then be lower than the market price.
C)all consumers will be able to afford the product.
D)quantity demanded equals quantity supplied. The market price will then equal the equilibrium price.

Question

Quizplus · Accepted Answer

When there is a surplus in the market, the price will fall until the quantity demanded equals the quantity supplied. At this point, the market is in equilibrium, and there is no longer a surplus or shortage. The market price will then equal the equilibrium price. Therefore, option D is the correct answer.

The Market Price for a Product Will Fall When There