[SOLVED] when a surplus exists in a market, sellers

When a surplus exists what should sellers do? When a shortage exists?

Answer:

The best answer for When there is a surplus in the market, sellers

When there is a surplus in the market, sellers respond by cutting prices, which in turn increase the quantity demanded & decrease the quantity supplied. When a shortage exists in a market, sellers respond by raising prices without losing sales, as prices raise quantity demanded decreases and quantity supplied increases and the market moves toward equilibrium.

Leave a Comment