If the quantity supplied exceeds the quantity demanded, the market price will fall until:
A)the quantity demanded exceeds the quantity supplied.The market will then be in equilibrium.
B)quantity demanded equals quantity supplied.The equilibrium price will then be lower than the market price.
C)all consumers will be able to afford the product.
D)quantity demanded equals quantity supplied.The market price will then equal the equilibrium price.

Question

Quizplus · Accepted Answer

When the quantity supplied exceeds the quantity demanded, there is an excess supply or surplus in the market. This puts downward pressure on the price as producers try to sell the excess supply. As the price falls, the quantity demanded increases and the quantity supplied decreases until they become equal, which is the market equilibrium. At this point, the market price will be equal to the equilibrium price. Therefore, the correct choice is D, where quantity demanded equals quantity supplied and the market price equals the equilibrium price.

If the Quantity Supplied Exceeds the Quantity Demanded, the Market