Question

a represents the new quantity demanded, while b represents the new quantity supplied. what is the result of these changes? excess supply. based on this graph, what will prices most likely do? rise fall stay the same

Explanation:

Step1: Analyze market - excess supply

When there is excess supply (quantity supplied is greater than quantity demanded as shown in the graph), producers have unsold goods.

Step2: Determine price change

To sell off the excess goods, producers will lower prices. So prices will fall.

Answer:

fall