If the current price is above the equilibrium price, we would expect:

Question

Quizplus · Accepted Answer

If the current price is above the equilibrium price, it means the market is in surplus. Producers are producing more goods than consumers are willing to buy at the given high price. This situation leads to excess supply or a surplus, and suppliers will be forced to cut their prices in order to stimulate demand. As a result, quantity supplied will exceed quantity demanded.

If the Current Price Is Above the Equilibrium Price, We