An excess quantity supplied can be corrected by
A) a fall in price.
B) legally fixing the price at its present level.
C) a decrease in demand.
D) an increase in supply.

Question

Quizplus · Accepted Answer

When there is an excess quantity supplied, it means that the quantity supplied is greater than the quantity demanded at the prevailing price. This leads to a surplus in the market, and suppliers may need to lower their prices in order to attract more buyers and reduce the excess supply. Therefore, the correct answer is A, a fall in price, which will stimulate demand and help to eliminate the excess supply.

An Excess Quantity Supplied Can Be Corrected by