Question

the graph shows the market for electric blankets. draw a horizontal line at a price at which there is a surplus of electric blankets. label it price. draw an arrow that shows the amount of the surplus. when does a surplus occur? how does the price change to reach equilibrium? a surplus occurs at a given price when _____. the price _____ to reach equilibrium. a. demand is greater than supply; rises b. the quantity supplied is greater than the quantity demanded; falls c. the quantity demanded is greater than the quantity supplied; rises d. supply is greater than demand; falls

Explanation:

A surplus in a market occurs when producers are willing to supply more of a good than consumers are willing to buy at a particular price. To reach equilibrium, the price must fall to encourage more consumption and reduce the quantity supplied.

Answer:

B. the quantity supplied is greater than the quantity demanded; falls