When there is a surplus of a good:
A) sellers will lower the price in order to increase quantity demanded.
B) sellers will raise the price in order to decrease quantity demanded.
C) sellers will compete with buyers.
D) this is an indication the buyers do not value the good.

Question

Quizplus · Accepted Answer

When there is a surplus of a good, there is an excess in supply, meaning that sellers have more of the good than buyers are willing to purchase at the current price. In order to sell the surplus, sellers will lower the price to attract more buyers and increase quantity demanded, thereby achieving equilibrium in the market. As a result, Choice A is the correct answer.

When There Is a Surplus of a Good