Short Answer 
Excess supply occurs when the quantity of goods exceeds consumer demand, resulting from prices set above equilibrium. To balance the market, prices should decrease, encouraging demand while reducing supply until market equilibrium is achieved, which stabilizes prices and availability.
Step 1: Understand Excess Supply
When the market experiences excess supply, it means that the quantity of products available is greater than what consumers want to buy. This situation occurs when the price of goods is set above the equilibrium price. At this higher price, producers supply more, but consumers opt to purchase less, leading to surplus.
Step 2: Recognize the Need for Price Decrease
To correct this imbalance and move towards equilibrium, prices need to be lowered. A decrease in price will encourage more consumers to buy the product, thus increasing demand. At the same time, it may discourage producers from supplying as much, which helps clear the excess supply.
Step 3: Achieve Market Equilibrium
As prices fall, the market will eventually reach a point where the quantity demanded matches the quantity supplied, achieving market equilibrium. This balance is essential for a healthy economy, as it allows for stable prices and availability of goods. When equilibrium is reached, there is neither a surplus nor a shortage in the market.