When there is overproduction in a market,
A) market price is too low.
B) there is excess quantity demanded.
C) the total of consumer and producer surplus is maximized.
D) there is a deadweight loss.

Question

Quizplus · Accepted Answer

Overproduction in a market typically leads to a deadweight loss because it indicates that resources are not being allocated efficiently. This inefficiency means that the total surplus (consumer plus producer surplus) is not maximized, as some resources are wasted or used less effectively than they could be.

When There Is Overproduction in a Market