QUESTION IMAGE
Question
the law of supply and demand
assignment active
disequilibrium
excess supply
\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
Brief Explanations
In the context of supply and demand, excess supply (where quantity supplied exceeds quantity demanded) creates a surplus. Producers will lower prices to sell the excess goods, moving toward equilibrium. So prices will fall.
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fall