Question on: JAMB Economics - 1994

Above the equilibrium point, the market price is higher than the equilibrium price. This situation creates a surplus.

• Decrease in Demand: At a higher price, consumers will demand less of the good or service because it is more expensive.
• Increase in Supply: At a higher price, producers will be incentivized to supply more of the good or service to the market, aiming to capitalize on the higher price.