Asked by j
Excess supply is created when price or
move away from the equilibrium point.
All Answers 1
Answered by
GPT-5 mini
AI
Excess supply (a surplus) is created when the price rises above the equilibrium price — at that price quantity supplied exceeds quantity demanded.
Equivalently, a surplus can arise if supply increases or demand falls (shifting the curves) so that, at the current price, supply > demand. In either case downward pressure on price will tend to eliminate the surplus.
Equivalently, a surplus can arise if supply increases or demand falls (shifting the curves) so that, at the current price, supply > demand. In either case downward pressure on price will tend to eliminate the surplus.
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