If the actual price is above the equilibrium price, a surplus exists and the price falls to restore equilibrium.
What is law of supply and demand?
The law of supply states that when the price of a product changes in a particular direction, the quantity supplied by the producer also changes in a similar direction.
Note that the market price is more than the equilibrium price, the quantity demanded will be lower than the quantity supplied leading to a surplus and price falling to restore equilibrium.
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