In the market for natural gas, surplus is transferred from consumers to producers when

Question

Quizplus · Accepted Answer

Surplus is defined as the amount by which the quantity supplied of a good exceeds the quantity demanded at a given price. Thus, when there is a surplus of natural gas, producers have more supply than they can sell to consumers. In this scenario, producers will decrease the price of natural gas, creating a market condition in which surplus is transferred from consumers to producers.

In the Market for Natural Gas, Surplus Is Transferred from Consumers