If demand for a product decreases, there will be excess supply at the original equilibrium price.

Name: If demand for a product decreases, there will be excess supply at the original equilibrium price.
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Question

Quizplus · Accepted Answer

If demand decreases, the quantity demanded at the original equilibrium price will be less than the quantity supplied, resulting in excess supply or a surplus. To reach a new equilibrium, the price must decrease to increase demand or increase supply to match the reduced demand.

If Demand for a Product Decreases, There Will Be Excess