Question

Suppose that producers are charging a price that is higher than the equilibrium price. Will this create a surplus or shortage of goods? In 2-3 sentences, explain your answer.

Answer 1

Since the price is higher than the equilibrium price, lesser people will buy the goods. Therefore, there's going to be a surplus. 

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Answer 2

If producers were to charge a price that is higher than the equilibrium price, this will create a surplus of goods because consumers demand goods and services at the lowest price. Since the price that producers offered were too high, fewer consumers will demand this product.