The quantity of a good bought and sold in a market will be below the equilibrium quantity if:

Question

Quizplus · Accepted Answer

The equilibrium price is the price where the quantity demanded in the market equals the quantity supplied. If the market price is above the equilibrium price, the quantity supplied will exceed the quantity demanded, creating a surplus. This means that sellers will have more of the good than they can sell, and they will be forced to lower the price to clear the market. As the price falls, quantity demanded will increase, and quantity supplied will decrease, moving the market towards the equilibrium. Therefore, the quantity bought and sold will be below the equilibrium quantity if the market price is above the equilibrium price.

The Quantity of a Good Bought and Sold in a Market