FIGURE 3-12 Price Above Its Equilibrium Level Creates a Surplus

Price Above Its Equilibrium Level Creates a Surplus The market price of $1.50 is above the equilibrium price of $1. This creates a surplus: at a price of $1.50, producers would like to sell 11.2 billion pounds but consumers want to buy only 8.1 billion pounds, so there is a surplus of 3.1 billion pounds. This surplus will push the price down until it reaches the equilibrium price of $1.