A surplus exists in the market when

Question

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded. This means that there is excess supply in the market and producers may have to lower prices or reduce production in order to sell their goods. Option A describes a situation of excess demand, while option B describes a state of equilibrium where supply and demand are equal. Options D and E refer to price and supply curve movements, but do not necessarily indicate the presence of a surplus.

A Surplus Exists in the Market When