How will the market for test kits return to equilibrium?
The price will ________________, which will ________________.
The quantity supplied exceeds the quantity demanded, so there is a surplus of test kits. What happens in a market when there is a surplus? The price changes, which creates a change in the quantity demanded and the quantity supplied. Demand and supply do not change.
The quantity supplied exceeds the quantity demanded, so there is a surplus of test kits. How will the market price change to eliminate the surplus? A rising price would create an even larger surplus.
The quantity supplied exceeds the quantity demanded, so there is a surplus of test kits. How will the market price change to eliminate the surplus? The demand and supply do not change.
The quantity supplied exceeds the quantity demanded, so there is a surplus of test kits. The market price will start to fall and as it does, the quantity demanded increases, the quantity supplied decreases, and the surplus is eliminated.
