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lesson pretestMultiple Choice

Pretest

Question 1 • Economics

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

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

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.

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