Answer:
The answer is letter d, consumers want to buy less than producers offer for sale.
Explanation:
The answer is best explained with the demand-and-supply curve. When supply meets the demand, an equilibrium occurs. This means that the demand-and-supply curve intersects. At this point, there is no need to change the price of the product.
When the price is below the equilibrium level, this means that the quantity supplied is less than the quantity demanded. So, letter a is incorrect.
If the supply curve is downward sloping and the demand curve is upward sloping, this means that there is more demand than the supply of the product. So, letter b is incorrect.
When the demand and supply curves fail to intersect, it doesn't always mean that there is a surplus of the product. It could be also mean there is less supply and more demand. So, letter c is incorrect.
A higher price results to more items being produced. However, when consumers demand less of a product, it is very natural that the supply of that item will have a surplus. This means that the price is above the equilibrium level. So, the answer is letter d.
