Bringing Supply and Demand Together

At a price greater than the equilibrium price, a surplus, or excess quantity supplied, would exist.

• At a price greater than the equilibrium price, a surplus, or excess quantity supplied, would exist.
• Sellers would be willing to sell more than demanders would be willing to buy.

Frustrated suppliers would cut their price and cut back on production, and consumers would buy more.

• Frustrated suppliers would cut their price and cut back on production, and consumers would buy more.
• This would eliminate the unsold surplus and return the market to equilibrium.