Answer:
If the price is above the equilibrium level, the quantity supplied exceeds the quantity demanded, meaning there is a surplus or glut. Because producers are trying to sell more units than buyers wish to purchase, they tend to lower their asking price. On the other hand, if the price is below the equilibrium level, the quantity demanded exceeds the quantity supplied, meaning there is a shortage. Because consumers are trying to buy more units than producers wish to sell, producers have an incentive to raise their asking price (or consumers bid higher prices, depending on the mechanics of the particular market).