6
QuizMultiple Choice

Profit — Unit test

Question 6 • 2102320-Economics HONORS - Edgenuity Teacher

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

Answer
e
excess supply
s
stable prices
e
exact equilibrium
i
increased production

Explanation

When sellers offer more of a good than buyers want to purchase at the current price, a surplus forms. This situation is called excess supply, so the correct choice is excess supply. The market is not at equilibrium because quantity supplied and quantity demanded are unequal.

AI-written and checked against the verified answer.

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