When a market is in disequilibrium,such as when the quantity supplied of a good is greater than the quantity demanded of that good,the price of the good will rise,ceteris paribus.

Question

Quizplus · Accepted Answer

When the quantity supplied of a good is greater than the quantity demanded of that good, this creates a surplus in the market. In this situation, sellers may need to lower the price of the good in order to attract more buyers and clear the excess supply. Therefore, the price of the good will typically fall rather than rise in disequilibrium.

When a Market Is in Disequilibrium,such as When the Quantity