ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Shortage
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Surplus
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Equilibrium
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Scarcity
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Detailed explanation-1: -The quantity supplied of a good or service exceeding the quantity demanded is called a surplus. If the quantity demanded exceeds the quantity supplied, a shortage exists. The equilibrium price is the price in which the quantity supplied equals the quantity demanded.
Detailed explanation-2: -Economists call this situation an “excess supply” – that is the quantity demanded is less than the quantity supplied at the given price. This is also called a surplus.
Detailed explanation-3: -A surplus will occur if the quantity supplied is higher than the quantity demanded. On the other hand, a shortage occurs when the demand for the product is higher than what has been supplied.
Detailed explanation-4: -Excess supply is a market condition when the quantity supplied is greater than the demand for a commodity at the prevailing market price. It occurs at a price greater than the equilibrium price level.