When the quantity supplied of a good exceeds the quantity demanded, there is a(n):
A) shortage.
B) surplus.
C) equilibrium.
D) opportunity cost.

Question

Quizplus · Accepted Answer

A surplus occurs when there is an excess supply of a good in the market, meaning that the quantity supplied exceeds the quantity demanded. This often leads to a decrease in the price of the good, as producers try to sell the excess supply.

When the Quantity Supplied of a Good Exceeds the Quantity