Sia
Question
Microeconomics
Posted 7 months ago
Which of the following terms describes a situation in which there is an excess quantity supplied in a market?
Choose 1 answer:
(A) Efficiency
(B) Excess demand
(c) Shortage
D) Surplus
(E) Equilibrium
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Answer from Sia
Posted 7 months ago
Solution
a
Definition of Surplus: A surplus occurs when the quantity supplied of a good exceeds the quantity demanded at a given price
b
Market Dynamics: In a surplus situation, producers are unable to sell all their goods at the current price, leading to downward pressure on the price
Answer
(D) Surplus
Key Concept
Surplus
Explanation
A surplus describes a situation where the quantity supplied in a market exceeds the quantity demanded, leading to excess supply.
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