Price will tend to fall when a. there is a shortage b. quantity demanded is greater than the quantity supplied. c. prices above equilibrium d. quantity ...

Thus, whenever there is a surplus (price above the equilibrium), the price tends to fall.

Question: The price of a good will tend to fall if: a) there is a surplus at the current price. b) the current price is below the equilibrium price. c) the ...

Answer: D. The price of a good will fall if there is a surplus of that good. This is because producers will compete for a limited amount of buyers.

The price of a good will tend to fall if A) there is a surplus at the current price. B) the current price is below the equilibrium price.

When there is excess demand for a product in a market, price will tend to fall. price must be below the equilibrium price. price must be above the equilibrium ...

A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause ...

Since price will tend to rise when excess demand leads to shortages, and price will tend to fall when there is excess supply, the only point at which price ...

a. Excess supply will cause price to fall, and as price falls producers are willing to supply less of the good, thereby decreasing output.