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Surplus

24 bytes added, 04:41, August 1, 2007
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A surplus is the excess in quantity supplied above the quantity demanded. This occurs when the price of a good is higher than the market equilibrium price. When the seller lowers the price for that good, more consumers will buy the good and the surplus will disappear. Some surpluses cannot be fixed because the government imposes a [[binding price floor]] in a market creating a surplus.
 
[[category:economics]]
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