If the quantity supplied of a product exceeds the quantity demanded, what will happen to the market price?

When the quantity supplied of a product exceeds the quantity demanded, this situation indicates a surplus in the market. In such cases, sellers will be unable to sell all of their available products at the current market price. To attract buyers and reduce the surplus, sellers are likely to lower their prices. As the price decreases, the quantity demanded typically increases (as lower prices usually encourage more consumers to purchase), while the quantity supplied may decrease (since higher prices incentivize producers to supply more).

This price adjustment process continues until the market reaches an equilibrium point, where the quantity supplied equals the quantity demanded. Thus, the correct response highlights that the market price will fall until the quantity demanded matches the quantity supplied, effectively eliminating the surplus and achieving equilibrium in the market.

The other potential outcomes—like the market price increasing or remaining constant—do not accurately reflect the behavior observed in surplus situations, where downward pressure on price is a natural market response. Additionally, suggesting that price fluctuations are unpredictable does not align with the predictable economic principle of supply and demand adjustments in response to surpluses.