Surpluses are eliminated by
A) allowing price to fall.
B) increasing quantity supplied.
C) decreasing quantity demanded.
D) allowing price to rise.
E) frightening consumers.

Question

Quizplus · Accepted Answer

Surpluses in a market occur when the quantity supplied exceeds the quantity demanded at a given price. Allowing the price to fall will encourage more consumers to buy the product and discourage some producers from supplying as much, thus eliminating the surplus.

Surpluses Are Eliminated by