which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?\no it needs…

which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?\no it needs to be increased.\no it needs to be decreased.\no it needs to reach the price ceiling.\no it needs to remain unchanged.

which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?\no it needs to be increased.\no it needs to be decreased.\no it needs to reach the price ceiling.\no it needs to remain unchanged.

Answer

Answer:

It needs to be decreased.

Explanation:

Step1: Analyze the graph situation

At price p2, there is excess supply as quantity supplied is greater than quantity demanded.

Step2: Recall equilibrium concept

In equilibrium, quantity demanded equals quantity supplied.

Step3: Determine price - change direction

To reduce excess supply and reach equilibrium, the price needs to decrease so that quantity demanded increases and quantity supplied decreases.