Question

When equilibrium price of a good is greater than its market price there will be competition among the sellers

Answer 1

When equilibrium price of any good is greater than the market price there will be excess demand in the market implying that demand will be greater than supply in the market.Hence,there will be competition among consumers/buyers and not sellers.

Explanation:

A lower market price than the equilibrium price in the market indicates that demand for the product will be greater than its supply in the market.It implies that at the current market price,the consumers or buyers are willing to buy more of the product than the sellers are willing to sell.This gap between demand and supply or the excess demand will push the price upward leading to an increase in the market price until it becomes equal with the equilibrium price.This is due to competition among buyers or consumers and not the sellers.When equilibrium price will be equal to market price,both demand and supply for the product will be same or identical in the market and there will excess or shortage of any of the components.