A surplus of a good could possibly be eliminated by:
A) the removal of a price floor.
B) the removal of a price ceiling.
C) a sufficient decrease in demand keeping price constant.
D) a sufficient increase in supply keeping price constant.

Question

Quizplus · Accepted Answer

A surplus occurs when the quantity supplied exceeds the quantity demanded at a given price. A price floor, which is a minimum price set above the equilibrium price, can cause a surplus. Removing the price floor allows the price to fall to the equilibrium level, eliminating the surplus.

A Surplus of a Good Could Possibly Be Eliminated By