2. If excess supply exists within a market ______. a) the quantity demanded exceeds quantity supplied and the price must decrease to reach the point of market equilibrium b) the quantity supplied exceeds the quantity demanded and price must increase to reach the point of market equilibrium c) the quantity supplied exceeds quantity demanded and the price must decrease to reach the point of market equilibrium d) the quantity demanded exceeds quantity supplied and the price must increase to reach the point of market equilibrium
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This creates a situation where sellers are competing for buyers, which puts downward pressure on prices. Show more…
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