Question

question 9 (10 points)
which of the following is occurring in the market when an excess quantity of a good is supplied at the current price?
the market price must be above equilibrium price.
the market price must be below equilibrium price.
the market price will tend to rise.
the market price must be the equilibrium price.

Explanation:

When quantity supplied exceeds quantity demanded (excess supply) at the current price, this happens because the market price is higher than the equilibrium price. At prices above equilibrium, suppliers want to sell more than consumers want to buy, creating a surplus. In this scenario, prices tend to fall, not rise, to reach equilibrium. A price below equilibrium causes excess demand, not supply, and at equilibrium, quantity supplied equals quantity demanded.

Answer:

The market price must be above equilibrium price.