A surplus of wheat:
A) is impossible if people are hungry.
B) is impossible if the price of wheat is below equilibrium.
C) will result when the quantity demanded exceeds the quantity supplied at the current price.
D) is unlikely to cause any change in the price of wheat.

Question

Quizplus · Accepted Answer

A surplus of wheat occurs when the quantity supplied exceeds the quantity demanded at the current price, not when the quantity demanded exceeds the quantity supplied. This is more likely when the price of wheat is above the equilibrium, not below, as higher prices discourage demand. Choices A, C, and D are incorrect based on economic principles.

A Surplus of Wheat