Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 4 - Demand, Supply, and Market Equilibrium - Exercises - 4.3 Market Equilibrium: Bringing Demand and Supply Together - Page 93: 3.4

Answer

$\downarrow$ $\uparrow$ $\downarrow$

Work Step by Step

When there is an excess supply, prices will drop. The lower price results in demand increasing and the supply decreasing.
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