BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Overstocking, also called “surplus stock, ” happens when stores purchase more product than they sell. Over-ordering inventory leaves retailers with too much stock, and that excess stock is left sitting on store shelves or in the warehouse, which can hurt profitability.

Detailed explanation-2: -A Market Surplus occurs when there is excess supply-that is quantity supplied is greater than quantity demanded. In this situation, some producers won’t be able to sell all their goods. This will induce them to lower their price to make their product more appealing.

Detailed explanation-3: -When the quantity supplied in a market exceeds the quantity demanded, we say there is a surplus in the market.

Detailed explanation-4: -in a market setting, disequilibrium occurs when quantity supplied is not equal to the quantity demanded; when a market is experiencing a disequilibrium, there will be either a shortage or a surplus.