20
QuizMultiple Choice

Determining Market Price — Quiz

Question 20 • Economics

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

Answer
A
stable prices
B
exact equilibrium
C
excess supply
D
increased production

Explanation

When sellers offer more of a good at a given price than buyers want to purchase, the unsold amount is a surplus, also called excess supply. This is different from equilibrium, where quantity supplied equals quantity demanded. So the correct choice is excess supply.

AI-written and checked against the verified answer.

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