"In a surplus scenario, as prices fall, consumers buy more, eliminating the surplus and moving the market back to equilibrium." This statement would be correct if:

Question

Quizplus · Accepted Answer

The statement is correct as written because in a surplus scenario, prices falling leads to an increase in quantity demanded by consumers, which helps eliminate the surplus and move the market back to equilibrium.

"In a Surplus Scenario, as Prices Fall, Consumers Buy More