Answer :
The correct option is producers reduce the level of output and reduce price when a surplus exists for a product.
The quantity of an product or resource that is over the amount that is being actively used is referred to as a surplus. In addition to money, capital, and goods, a surplus can also refer to a wide range of other things. A surplus in the sense of inventories refers to items that are still on store shelves but have not yet been purchased. When money is earned and costs are paid, there is a surplus in a budget. Governments may also have a budget surplus if there are any tax revenues left over after all expenditures for government programmes have been paid in full. Economic surplus comes in two flavours: consumer surplus and production surplus.
Learn more about surplus here:
https://brainly.com/question/15416023
#SPJ4
