In a free market, if the price of a good is above the equilibrium price, then;
A)sellers, dissatisfied with growing inventories, will raise their prices.
B)buyers, hoping to ensure they acquire the good, will bid the price lower.
C)the government will set a lower price to reestablish the market equilibrium.
D)sellers, dissatisfied with growing inventories, will lower their prices.

Question

Quizplus · Accepted Answer

If the price is above the equilibrium price, there will be excess supply, so sellers have an incentive to lower their prices in order to increase their sales.

In a Free Market, If the Price of a Good