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23 July, 00:15

Here is a surplus in a market for a product when rev: 05_07_2018 Multiple Choice

demand is less than supply.

the current price is lower than the equilibrium price.

quantity demanded is greater than quantity supplied.

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Answers (1)
  1. 23 July, 03:54
    0
    demand is less than supply.

    Explanation:

    Definition : Surplus is when : Demand < Supply

    Alternate Name : This can also be termed as 'Excess Supply'

    Cause : It is usually at price higher than equilibrium price when : supply (directly) related to price > demand (inversely related to price).

    This higher price leads to quantity supplied more than quantity supplied; creates surplus of the commodity

    Effect : It creates competition among sellers & reduces the price. Price fall increases quantity demanded & decreases quantity supplied; till they are equalised again & equilibrium is restored
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Home » Business » Here is a surplus in a market for a product when rev: 05_07_2018 Multiple Choice demand is less than supply. the current price is lower than the equilibrium price. quantity demanded is greater than quantity supplied.
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