If a market has a surplus, how will the market respond?
A) The price will fall and the quantity supplied will fall.
B) The price will fall and the quantity supplied will rise.
C) The price will rise and the quantity supplied will fall.
D) The price will rise and the quantity supplied will rise.

Question

Quizplus · Accepted Answer

When there is a surplus in the market, it means that the quantity supplied exceeds the quantity demanded at the current price. To eliminate the surplus, the price will fall, which will decrease the quantity supplied as suppliers produce less at lower prices.

If a Market Has a Surplus, How Will the Market