Answer
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Work Step by Step
When there is an excess supply, prices will drop. The lower price results in demand increasing and the supply decreasing.
Microeconomics: Principles, Applications, and Tools (8th Edition)
by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen
Published by
Prentice Hall
ISBN 10:
0-13294-886-9
ISBN 13:
978-0-13294-886-9
Chapter 4 - Demand, Supply, and Market Equilibrium - Exercises - 4.3 Market Equilibrium: Bringing Demand and Supply Together - Page 93: 3.4
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