When the price of a good is above the equilibrium, there will be

Assessment: WAEC SSCE - Economics - 2019 (Objective) Subject: Economics

Question 1 Report

When the price of a good is above the equilibrium, there will be

Answer Details
When the price of a good is above the equilibrium, there will be a surplus. This is because at the higher price, suppliers are willing to supply more of the good than consumers are willing to buy. As a result, there will be excess supply, or a surplus, of the good. To get rid of this surplus, suppliers may have to lower their prices until they reach the equilibrium price where the quantity supplied equals the quantity demanded.
Read lesson note on Theory Of Price Determination (WAEC)
Read lesson note on Supply (WAEC)
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