Another name for a surplus is
A) excess quantity supplied.
B) excess quantity demanded.
C) equilibrium.
D) market clearing.

Question

Quizplus · Accepted Answer

A surplus occurs when there is an excess quantity supplied in the market. This means that producers are supplying more goods or services than consumers are willing to buy at the prevailing market price. Hence, choice A is the correct option. Choice B refers to a shortage where there is excess quantity demanded, while choices C and D refer to a state of balance where the quantity supplied equals the quantity demanded at a particular price, known as equilibrium.

Another Name for a Surplus Is