When there is excess supply in a market, there is upward pressure on the price. O there is downward pressure on the price. the market is in equilibrium. O there are too many buyers. Question 27 A supply curve slopes upward because O an increase in price acts as a deterrent for producers to supply more. an increase in price acts as an incentive for producers to produce more. as price falls, costs also fall. Therefore producers supply more. as price increases, supply also increases