A surplus of cardboard boxes means that
A) at the current price of a cardboard box, the quantity demanded exceeds the quantity supplied.
B) at the current price of a cardboard box, the quantity demanded is less than the quantity supplied.
C) the current price of a cardboard box is less than the equilibrium price.
D) at the current price of a cardboard box, the quantity demanded equals the quantity supplied and the price will fall to restore the equilibrium.
E) More information is needed to determine if the price of cardboard boxes is higher than, lower than, or equal to the equilibrium price.

Question

Quizplus · Accepted Answer

When there is a surplus of cardboard boxes, it means that the quantity supplied of cardboard boxes is greater than the quantity demanded at the current price. This would lead to a buildup of inventory and sellers may reduce the price of cardboard boxes to encourage buyers to purchase more, bringing the market towards equilibrium. Therefore, option B is the correct answer.

A Surplus of Cardboard Boxes Means That