If there is a surplus of a product, we can conclude that
A)the product's price is above equilibrium.
B)the product's price is too low for equilibrium.
C)quantity demanded exceeds quantity supplied.
D)the product's price will rise.
E)consumers want to buy more than is being made available by producers.

Question

Quizplus · Accepted Answer

A surplus occurs when there is an excess supply of a product, meaning that quantity supplied exceeds quantity demanded. This suggests that the price of the product is above equilibrium, since at the equilibrium price, quantity supplied and quantity demanded are equal. In order to eliminate the surplus, the price would need to decrease in order to increase the quantity demanded and decrease the quantity supplied.

If There Is a Surplus of a Product, We Can