asked 34.4k views
19 votes
What happens when the supply is higer than the demand

2 Answers

2 votes

Answer:

When the supply is higher than the demand a fall in equilibrium prices will occur. That is when the price falls because there isn't a high enough demand to supply ratio. On the other hand, when supply is lower than demand, the prices rise.

answered
User Suraksha Ajith
by
9.0k points
6 votes
prices go down also called and economic surplus.
answered
User Nicolas Zanotti
by
8.1k points
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