If there is a surplus of a good, sellers will:
A) lower the price in order to increase quantity demanded.
B) raise the price in order to decrease quantity demanded.
C) compete with buyers.
D) know that the buyers overvalue the good.

Question

Quizplus · Accepted Answer

When there is a surplus of a good, it means that there is an excess supply of the good, and not enough buyers to purchase it. In order to increase sales and reduce inventory levels, sellers will generally lower the price of the good to make it more attractive to potential buyers. This should lead to an increase in the quantity demanded and eventually help the market to clear.

If There Is a Surplus of a Good, Sellers Will