Complete the following sentence.A surplus
A)exists if the price is above the equilibrium price.
B)is the amount by which the quantity demanded exceeds the quantity supplied.
C)is the amount by which the quantity demanded exceeds the equilibrium quantity.
D)is the amount by which the quantity supplied exceeds the equilibrium quantity.
E)will lead to rising prices.

Question

Quizplus · Accepted Answer

A surplus exists when the price is above the equilibrium price because at this price, the quantity supplied exceeds the quantity demanded, leading to excess supply.

Complete the Following Sentence.A Surplus