a surplus occurs when quantity supplied is ________ than quantity demanded at a price ________ the market…
a surplus occurs when quantity supplied is ________ than quantity demanded at a price ________ the market clearing price. \na. less, below \nb. less, above \nc. greater, below \nd. greater, above
Answer
Brief Explanations:
A surplus in a market occurs when the quantity of a good or service that producers are willing to supply is greater than the quantity that consumers are willing to buy. This situation typically happens when the price is set above the market - clearing price (equilibrium price). At a price above the equilibrium, producers are incentivized to supply more, while consumers demand less.
Answer:
D. greater, above