How can excess supply in a goods market be eliminated use a graph to substantiate your answer?

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1120507

2026-05-03 12:00

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Excess supply in a goods market occurs when the quantity supplied exceeds the quantity demanded at a given price. This can be eliminated by lowering the price, which shifts the supply and demand curves. In a graph, the equilibrium price is where the supply and demand curves intersect; reducing the price encourages higher demand and reduces supply until equilibrium is restored. As the price decreases, movement along the demand curve increases the quantity demanded while simultaneously decreasing the quantity supplied, effectively eliminating the excess supply.

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