Economic theory suggests that in a capitalist market economy, with free capital mobility, the demand for goods and services equals supply, by adjusting the equilibrium price.
If the supply suppresses the demand, the price will be adjusted downward, until you find the balance. Similarly, if the supply of goods and services is less than demand, the price will adjust up to a new break-even point. That is, the economy has a natural adjustment to equilibrium.
The third answer is correct.