A surplus
A)can never occur in a market that is functioning properly and without interference.
B)occurs when market price is below equilibrium price.
C)occurs when sellers are willing to sell more than consumers are willing to buy.
D)is an example of failure on the part of a market.
E)causes a price increase in a market.

Question

Quizplus · Accepted Answer

A surplus occurs when sellers are willing to sell more than consumers are willing to buy, resulting in excess supply. This can happen even in a functioning market without interference from external factors. Option B describes a situation of shortage, while option E describes the opposite of what happens in a surplus. Option A and D are incorrect, as a surplus is not an indication of market failure.

A Surplus