When a surplus develops in a goods market as a result of a decline in demand, the market will tend to clear because

0 votes
    The price is allowed to fall, causing a decrease in the quantity supplied and an increase in quantity demanded, until the quantity demanded equals the quantity supplied.
     Supply decreases in response to the surplus of goods.
     The sellers send the surplus back to the manufacturers for partial refund.
     Demand will increase in response to the surplus of goods.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
The price is allowed to fall, causing a decrease in the quantity supplied and an increase in quantity demanded, until the quantity demanded equals the quantity supplied.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...