A price above equilibrium creates excess demand and tends to push price upward.

### Why this is right A price above equilibrium creates excess supply, because sellers offer more than buyers demand. This tends to put downward pressure on price, not upward pressure. ### The concept Excess demand occurs below equilibrium, while excess supply occurs above it. The price pressure follows the imbalance: scarcity tends to push price up, and surplus tends to push it down. ### The other options - **The statement is false**: It reverses both the imbalance and the expected price pressure. ### Watch out Do not memorize “above” or “below” alone; compare quantity supplied with quantity demanded. ### Remember Above equilibrium: surplus and downward pressure.