A surplus occurs when there is excess supply, meaning that quantity supplied is greater than quantity demanded. This often results in downward pressure on price as sellers try to compete to sell their excess supply. Therefore, option D is the correct choice.

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A Surplus Is

Question 179

Multiple Choice

A surplus is:

A) a situation in which quantity supplied is lower than quantity demanded
B) a situation in which there is downward pressure on price
C) a situation in which there is too much produced of a good
D) a situation in which quantity supplied is greater than quantity demanded

Correct Answer: