0
when there is a greater supply of a good than people want or are able to buy
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What is a market surplus?
total production - self consumption = market surplus
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
What happens to the total surplus in a market when the government imposes a tax?
Total surplus decreases.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
Market clearing price?
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
What is a market surplus?
total production - self consumption = market surplus
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
What happens to the total surplus in a market when the government imposes a tax?
Total surplus decreases.
What is Marketed Surplus Ratio of commodities?
The quantity of product(farm product) that is keep by the farmer and they do not sell this in the market is called market surplus ratio.
What is customer surplus and producer surplus?
Consumer surplus is the difference between the maximum amount a person is willing to pay for a good and its current market price. Producer surplus is the difference between the current market price and the full cost of production for the firm.
What is the difference between marketable surplus and marketed surplus?
The principal difference is time perspective: marketable surplus is produce that a farmer currently has on hand to take to market to earn a profit, while marketed surplus is what she has already taken to market to earn a profit.
When a cash surplus exists on your income and expenditure statement you can?
increase your investments
1 What can be said about the market price when a good is in surplus?
In a surplus, the market price will be lower. Since there are many options for consumers, they will want to pay the lowest price.
How does a surplus or a shortage of a good or service affect the market price?
A surplus or a shortage of a good or service affects the market price directly. When there is a surplus, the prices goes down and when there is a shortage the price increases due to the demand levels.
What is consumer surplus?
Consumer surplus can be used frequently when analyzing the impact of government intervention in any market
Consumer surplus arises in a market because?
Consumer surplus can arise in a market because of new technology. When a new phone comes out like the iPhone, older phones of this type might become obsolete. Consumer surplus arises in a market also because of higher prices.
