An excess supply of some product is the same thing as

Question

Quizplus · Accepted Answer

An excess supply of a product means that there is more of the product in the market than there is demand for it, resulting in a surplus. Therefore, choice D – a surplus – is the correct answer. Scarcity (choice A) and a shortage (choice B) are the opposite of excess supply. A price floor (choice C) is a government-imposed minimum price, which can create a surplus if the floor is set above the equilibrium price. Excess demand (choice E) would be the opposite of excess supply, where there is more demand for a product than there is supply.

An Excess Supply of Some Product Is the Same Thing