If the price of a product is higher than the equilibrium, what will occur?

There will be a surplus.

There will be deflation.

There will be a shortage.

There will be unemployment.

If the price of a product is higher than the equilibrium, there will be a surplus.

Option: A

Explanation:

Market equilibrium is reached when demand and supply curve intersect means there is an equal balance between demand and supply of the product in market. When the price of a product is higher than the equilibrium there will be a surplus of the product.

When producer produced enough product in comparison with demand what will happen? Producer will obviously sell his product in lower prices to make his stock clear. And when he lowers the price of product it will create huge demand means surplus of the product in the market.

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