if there is an excess in supply compared to demand, a surplus, the price drops. why would the producer be willing to sell for a lesser price when the consumer would still pay the normal price? if the customer valued it for the increased price they would still pay it.
Great question. Let's say you sell equestrian supplies. If one type of saddle is priced too high, and consumers aren't buying it, you are losing out on the opportunity to be stocking other supplies that consumers would buy. So, yes, *if* some consumers are willing to pay the high price, and *if* you have excess space you may just deal with the glut since you know the product will eventually sell, producers may leave the price high. But, it is a rare occurrence to have spare space, and it isn't a given that a product will eventually sell. This is why Kohls puts items on clearance. They know that some would be willing to pay the full price, but they want to clear room for more products that more people want. This problem is multiplied when the goods people are selling can expire, because in that case, you can be sure that no one will want to buy a moldy product - you cannot afford to wait.