Question

When a surplus exists in a market, sellers

a. raise price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.b. raise price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated.c. lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated.d. lower price, which decreases quantity demanded and increases quantity supplied, until the surplus is eliminated g?

Answer 1

lower price, which increases quantity demanded and decreases quantity supplied, until the surplus is eliminated. When there is a surplus we want to increase demand and reduce the supply. Lowering prices does this!