Suppose that the price of wheat is above its equilibrium price. You would expect to see
A) a shortage on the market that causes prices to increase further.
B) an increase in quantity demanded because of the high price.
C) a leftward shift of the demand curve because of the high price.
D) sellers begin to lower their prices because of the surplus of wheat.

Question

Quizplus · Accepted Answer

When the price of wheat is above its equilibrium price, it means that the price is too high, leading to a surplus of wheat on the market. Sellers, in an attempt to sell this surplus, will begin to lower their prices to attract more buyers, moving the price towards the equilibrium.

Suppose That the Price of Wheat Is Above Its Equilibrium