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pochemuha
4 years ago
6

The graph shows excess supply. A graph titled Excess supply has quantity on the x-axis and price on the y-axis. A line with posi

tive slope represents supply and a line with negative slope represents demand. The lines intersect at the point of equilibrium (p star, Q star). A point on the demand line is (P 2, quantity demanded) and a point on the supply line is (P 2, quantity supplied). Both points are higher than the point of equilibrium. Excess supply is indicated between the 2 points. Which needs to happen to the price indicated by p2 on the graph in order to achieve equilibrium?
History
1 answer:
tester [92]4 years ago
7 0

Answer:

It needs to be decreased.

Explanation:

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