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Zepler [3.9K]
3 years ago
10

What happens when the quantity of a good supplied at a given price is greater than the quantity demanded?

Social Studies
2 answers:
Bess [88]3 years ago
8 0

Answer:

The answer is excess supply.

Explanation:

Excess supply occurs when there is not a balance among prices because the good's quantity is higher than the quantity required. It means that the producers wants to sell a specific quantity of a product, but the buyers cannot get that quantity according to the predominant price.

When there is an excess supply the prices diminish, and the effect of this situation is that consumers have to purchase more and at the same time suppliers have to decrease their production.

In general terms, we can say that an excess supply does not allow that the economy can operate efficiently.  

lidiya [134]3 years ago
4 0
When the quantity supplied at a given price is grater than the quantity demand excess supply occurs. As a consequences prices are not stable and there is not an exact equilibrium. On the contrary, production should not increased but decreased otherwise the would be a lot of good without sail. 
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