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At a price that is too high a surplus will occur. This is because people value their money more than they value the marketed good.
When quantity supplied exceeds quantity demanded at a given price.
there is a surplus
A price floor can cause a surplus while a price ceiling can cause a shortage but not always.
A surplus in crops
At a price that is too high a surplus will occur. This is because people value their money more than they value the marketed good.
When quantity supplied exceeds quantity demanded at a given price.
there is a surplus
A price floor can cause a surplus while a price ceiling can cause a shortage but not always.
A surplus in crops
surplus
A shortage occurs when quantity demand exceeds quantity supplied. A surplus occurs when quantity supplied exceeds quantity demanded.
As the equilibrium price of a good raises the producer surplus increases as well, and as the equilibrium price falls the producer surplus decreases accordingly.
there is no surplus or shortage
When the price is above equilibrium, there is a surplus because supply is greater than demand. The price of the good will naturally decrease back to its equilibrium price where demand and suppy interesect, thus eliminating the surplus.
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.
You count how many widgits are left after profit maximization has been achieved.