A(n) _____ occurs when the quantity supplied exceeds the quantity demanded

Economics Dec 13, 2020

A(n) _____ occurs when the quantity supplied exceeds the quantity demanded.

A) overage,

B) surplus,

C) shortage,

D) demand deficit.

Expert Solution

The correct answer is: B) surplus

A surplus in the market occurs when the quantity supplied is greater than the quantity demanded. This happens when the price is above the equilibrium price because the producers will be willing to sell more at this price and the consumers will be willing to buy less at this price.

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