What happens when the quantity of a good supplied at a given price is greater than the quantity demanded? excess supply stable prices exact equilibrium increased production
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Price of the good falls until quantity demanded equals quantity supplied.
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When the quantity of goods supplied is greater than the quantity demanded. Then the prices of the commodity should be stable and constant to ensure that there is equilibrium i of price as compared to the quantity demanded and quantity supplied. The suppliers should not allow the buyers to dictate them the price since this is likely to happen because the suppliers may be rendered desperate due to surplus supply of goods in the market.
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