What is true if the price of a good is above the equilibrium price?

There is a surplus and the price will fall. Equilibrium price means a balanced price of goods, where the price favors both the producer and the consumer.

When the price of a commodity goes above the equilibrium price it means there is shortage in supply and high a demand for the goods.

Most producers try to take advantage of this period, when they eventually produce more it will lead to surplus goods and a fall in price.

In simple words, an increase in demand will cause a fall in supply which will lead to scarcity and a rise in price, a rise in supply will cause to a fall in demand surplus of goods which will lead to a surplus and fall in price.

There is a surplus and the price will fall. This is simply a matter of understanding how the equilibrium chart for supply and demand works (or a supply and demand curve, for those who haven’t taken higher economics classes). The supply of a good goes up as demand goes down, and the demand for a good goes up as the supply goes down.

The place where the two lines intersect on a graph is the equilibrium price: the point at which a customer is most happy to pay for the supply which is on hand.
If the price is too high, there’s going to be a surplus and price will fall in the