If there is a surplus of a good,the quantity demanded is ________ the quantity supplied,and the price will ________.
A) less than; rise
B) less than; fall
C) greater than; rise
D) greater than; fall
E) equal to; fall

Question

Quizplus · Accepted Answer

If there is a surplus of a good, the quantity supplied exceeds the quantity demanded. As a result, producers will have to lower the price to encourage consumers to buy more of the product, while at the same time reducing the quantity supplied. Therefore, the price will fall, and the quantity demanded will increase until the surplus is eliminated. Option B correctly states that the quantity demanded is less than the quantity supplied, and the price will fall.

If There Is a Surplus of a Good,the Quantity Demanded