question 3\n1 pts\nwhy is there a tendency for this market to adjust from a price of p1 to…

question 3\n1 pts\nwhy is there a tendency for this market to adjust from a price of p1 to p2?\n\ninsufficient production causes some consumers to offer to pay more for the product.\nthe presence of excess inventories forces firms to cut prices.\nthe presence of an economic shortage induces firms to offer lower prices.\nthe government wants to regulate the market.

question 3\n1 pts\nwhy is there a tendency for this market to adjust from a price of p1 to p2?\n\ninsufficient production causes some consumers to offer to pay more for the product.\nthe presence of excess inventories forces firms to cut prices.\nthe presence of an economic shortage induces firms to offer lower prices.\nthe government wants to regulate the market.

Answer

Brief Explanations:

At price $P_1$, quantity supplied exceeds quantity demanded, creating excess inventories. Firms will cut prices to sell off these inventories and move towards the equilibrium price $P_2$.

Answer:

The presence of excess inventories forces firms to cut prices.