Answer
supply
decrease
Work Step by Step
When the price is higher than the equilibrium price, suppliers will produce more than consumers are willing to buy. This excess supply will lead to a price decrease.
Microeconomics: Principles, Applications, and Tools (8th Edition)
by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen
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: 3.6c
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