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Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a surplus exists in the hamburger market, then the current price must be ________(higher or lower?) than the equilibrium price. For the market to reach equilibrium, you would expect _________(sellers to offer lower prices, or buyers to offer higher prices, or persistent excess supply?)

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fractureide

Answer:

Higher, sellers to offer lower prices.

Explanation:

If a surplus exists in the hamburger market, then the current price must be higher than the equilibrium price.  For the market to reach equilibrium, you would expect sellers to offer lower prices. When the market is at equilibrium the supply is equal to the demand, and the price does not change. As the price is higher than the equilibrium price there is an excess of supply. Supply is higher than demand. To reach equilibrium, I would expect sellers to lower the prices so that the demand equals supply.

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