If the market price of a product is set above the equilibrium price, what is likely to occur, and how will the market adjust?

• A. Excess supply will occur, leading producers to lower prices to reach equilibrium.
• B. The market will remain stable with no changes in price or quantity.
• C. Government intervention will be required to adjust the price.
• D. Excess demand will occur, leading producers to raise prices to reach equilibrium.

Answer: (A)