Question

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

Answer 1

When the quantity of a good supplied at a given price is greater than the quantity demanded, it results in **excess supply**. This situation usually leads to downward pressure on prices, as sellers may lower their prices to clear their surplus inventory and attract more buyers, moving the market towards equilibrium where quantity supplied equals quantity demanded.