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lakkis [162]
3 years ago
5

Please select the word from the list that best fits the definition More goods than are needed

History
1 answer:
egoroff_w [7]3 years ago
7 0

Answer:

The answer is oversupply, or excess supply, or excess production.

Explanation:

When more goods than are needed are produced or supplied, we have a situation in which supply does not meet demand, because supply is in fact higher than demand.

This creates a problem for suppliers (producers) because they have to charge lower prices in order to get rid of excess production.

A government policy that often causes excess supply is binding price floors. A binding price floor is a minimum price set by the government. This policy does not allow prices to adjust further below the legal limit, causing excess supply. The most common example of a binding price floor is the minimum wage. Minimum wages cause unemployment because they create an excess supply of workers, for a smaller demand of labor.

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