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Surplus is an excess of production or supply over demand. True or False?
MrAndyProcter
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∙ 8y ago
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What is surplus production?
Surplus production occurs when too much of a good is produced. Supply then outweighs the demand.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
Condition which the quantity demanded is greater than the quantity supplied?
Shortage of supply, or Excess/surplus of demand
What is the different between shortage and surplus?
A shortage is when there is a LACK (not enough) of that particular resource/product/item. A surplus is when there is EXCESS, or too much of a resource/product/item.
Occurs when supply outstrips demand?
surplus
What is surplus production?
Surplus production occurs when too much of a good is produced. Supply then outweighs the demand.
What happens to price when a surplus exists?
Surplus means there will be excess supply, meaning demand will fall, and so will prices
Condition which the quantity demanded is greater than the quantity supplied?
Shortage of supply, or Excess/surplus of demand
What is the different between shortage and surplus?
A shortage is when there is a LACK (not enough) of that particular resource/product/item. A surplus is when there is EXCESS, or too much of a resource/product/item.
Occurs when supply outstrips demand?
surplus
How Excess demand and excess supply eliminated by market forces?
Excess demand is easily eliminated by market forces. If either the price or the supply goes up, demand will decrease exponentially.
What is the difference between excess demand and excess supply?
Excess demand (a seller's market) means the product is in short supply and prices will rise. Excess supply (buyer's market) means too much product as compared to demand and therefore prices will fall.
When the demand does not meet supply what is that called?
Overproduction or glut or excess supply or demand shortage
How do you response for excess demand and excess supply?
Increase the price
Why the combination of consumer and producer surplus is not maximized if there is either excess demand or supply?
Because the land upon which people grows crops is limited to them. Therefore they can't increase their production also they have limited money previously so they can't grow new crops.
What is it called when supply is greater than demand?
Depression
When does excess demand occur in the equilibrium price?
Excess demand occurs when demand outweighs supply. This means there is a shortage of a good.
