What occurs when quantity demanded of a good is less than the quantity supplied at the prevailing market price?

Question

Quizplus · Accepted Answer

When quantity demanded of a good is less than the quantity supplied at the prevailing market price, it creates a surplus of the good in the market. In order to sell off the extra inventory, sellers would need to lower the price of the good, hence the price tends to fall. This would lead to an increase in quantity demanded and decrease in quantity supplied, eventually eliminating the surplus.

What Occurs When Quantity Demanded of a Good Is Less