WORLD HISTORY

Detailed explanation-1: -Excess Supply: the quantity demanded is less than the quantity supplied at the given price. This is also called a surplus.

Detailed explanation-2: -When producers have a surplus of supply, they must sell the product at lower prices. Consequently, more consumers will purchase the product, now that it’s cheaper. This results in supply shortages if producers cannot meet consumer demand.

Detailed explanation-3: -When there is more of a resource available than is being consumed, we say that there is a surplus. Excessive demand exceeds supply, creating a shortage.

Detailed explanation-4: -It can be said that there is an excess supply of a commodity in the market when the supply of a commodity exceeds the demand for that commodity at a particular price.

Detailed explanation-5: -When the quantity firms supply is greater than the quantity customers want to buy. This is resolved when firms reduce prices to sell off excess supply. Lower prices discourage supply and encourage demand until the excess is removed.