What will happen if the Lpg prices are falling abruptly? Price A Usually at this regulated price there will be excess supply (i.e quantity demanded quantity supplied ) Suppliers will compete for buyers, offering additional attractions. Supply Price requlation (floor) Dedicated stations are willing to supply this quantity. Demand D Excess supply Quantity11 What will happen if the LPG prices are falling abruptly? Supply Demand Price Quantity A C D Usually at this regulated price, there will be excess supply (i.e., quantity demanded < quantity supplied). Suppliers will compete for buyers, offering additional attractions. Price regulation (floor) Excess supply Dedicated stations are willing to supply this quantity