A surplus currently exists for fidget spinners. In a free-market economic system, the government must step in and buy any spinners that consumers do not buy in order to eliminate the surplus and establish equilibrium.

Question

Quizplus · Accepted Answer

Markets for products tend to move toward equilibrium through price adjustments. If there is a surplus of fidget spinners, the price of fidget spinners will fall, and buyers and sellers will adjust until equilibrium is achieved. Thus, adjustments in market price will restore equilibrium without government intervention.

A Surplus Currently Exists for Fidget Spinners