Answer to Question #201886 in Economics for Paballo

Question

When there is a surplus in a market,

•  A. there is excess demand.
•  B. there is downward price pressure.
•  C. producers sell more than the equilibrium quantity.
•  D. price is below the equilibrium level.

Answer 1

When there is a surplus in a market, there is downward price pressure, because the price is above equilibrium.

So, the correct answer is B.