Answered

Solve your doubts and expand your knowledge with IDNLearn.com's extensive Q&A database. Our platform is designed to provide trustworthy and thorough answers to any questions you may have.

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

A. Excess supply
B. Stable prices
C. Exact equilibrium
D. Increased production

Sagot :

GinnyAnsweridn

Final answer:

Excess supply (or surplus) happens when the quantity supplied exceeds the quantity demanded, resulting in a decrease in price until equilibrium is reached.


Explanation:

Excess supply, also known as a surplus, occurs when the quantity supplied of a good is greater than the quantity demanded at the current price. This situation leads to a decrease in price until equilibrium is reached. Stable prices are not characteristic of a scenario where excess supply exists. Increased production may be a result of the surplus being eliminated to restore equilibrium.


Learn more about Supply and demand dynamics here:

https://brainly.com/question/28153216


Your engagement is important to us. Keep sharing your knowledge and experiences. Let's create a learning environment that is both enjoyable and beneficial. Thank you for choosing IDNLearn.com. We’re committed to providing accurate answers, so visit us again soon.