Suppose the equilibrium price of oranges is $2.00 per kilogram.If the actual price is above the equilibrium price a

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Quizplus · Accepted Answer

If the actual price is above the equilibrium price, a surplus exists, meaning that suppliers are producing more than consumers are willing to buy at that price. To restore equilibrium, suppliers will have to lower their price until consumers start buying more, thereby reducing the surplus. This is why the price falls to restore equilibrium.

Suppose the Equilibrium Price of Oranges Is $2