When there is an excess quantity supplied
A) the market is in equilibrium.
B) quantity demanded is greater than quantity supplied.
C) quantity demanded is less than quantity supplied.
D) prices will remain stable.

Question

Quizplus · Accepted Answer

When there is an excess quantity supplied, it means that producers are producing more than what consumers are willing to buy. This results in a surplus of goods in the market, and the quantity demanded is less than the quantity supplied. As a result, prices are likely to fall as producers try to get rid of the excess supply.

When There Is an Excess Quantity Supplied