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.

Question

Business

Alexander Dixon

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.

+2

Answers (1)

Know the Answer?

Jadyn Gentry · Answer 1

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

Here is a surplus in a market for a product when rev: 05_07_2018 Multiple Choicedemand is less than supply.the current price is lower than the equilibrium price.quantity demanded is greater than quantity supplied.

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.