What happens when a shop charges a price above the equilibrium price?

When a shop charges a price above the equilibrium price, it means that the cost of the goods is higher than what consumers are willing to pay at that moment. The equilibrium price is the point where the quantity of goods supplied by producers matches the quantity of goods demanded by consumers. When the price is set above this equilibrium, the quantity supplied exceeds the quantity demanded, leading to a situation known as excess supply.

In this situation, producers may find themselves with unsold stock as consumers are less inclined to buy at the higher price. This mismatch between supply and demand ultimately results in a surplus of goods, prompting sellers to potentially lower their prices to attract more buyers and move their inventory, which can help return the market to equilibrium.

Thus, the charge above the equilibrium leads directly to excess supply rather than other scenarios such as excess demand, increased consumer spending, or maintenance of price equilibrium.