If a surplus exists in a market, then we know that the actual price is
A)above the equilibrium price, and quantity supplied is greater than quantity demanded.
B)above the equilibrium price, and quantity demanded is greater than quantity supplied.
C)below the equilibrium price, and quantity demanded is greater than quantity supplied.
D)below the equilibrium price, and quantity supplied is greater than quantity demanded.

Question

Quizplus · Accepted Answer

A surplus in a market occurs when the actual price is above the equilibrium price, leading to a situation where the quantity supplied exceeds the quantity demanded.

If a Surplus Exists in a Market, Then We Know