Question

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

Answer 1

When the quantity supplied of the commodity is greater than the quantity demanded at a given price is known as excess supply.

Further Explanation:

Excess Supply: It is also known as economic surplus. It refers to a situation where the quantity of supplied exceeds the quantity demanded of a service or product. The point at which the demand and supply curve intersect each other is known as the equilibrium point. The price and quantity demanded at the equilibrium are known as equilibrium price and equilibrium quantity, respectively.

The situation when the quantity of a good supplied is greater than quantity demanded:

When the price at which quantity will be supplied is more than the equilibrium price. Then the quantity of the goods that producers are willing to sell exceeds the quantity that buyers wish to buy at the current price. This will lead to excess supply in the market. The excess supply will put opposite impact on the prices and the market again comes to equilibrium.

Therefore, when the supply exceeds the demand for the commodity, it is known as excess supply.

Learn more:

1. Law of demand and supply

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2. Effect on demand

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3. Demand and Supply

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Answer details:

Grade: High School

Subject: Economics

Chapter: Demand and supply

Keywords: when the quantity of a good supplied at a given price is greater than the quantity demanded, excess supply, elasticity, demand and supply, impact on price, downward pressure on prices.

Answer 2

The correct answer is a surplus (aka excess supply) .

Any time a supply is larger than the demand, there will be a surplus. This is due to the fact that there is more of a product than desired by the consumers.

In this case, businesses will often lower prices so that they do not have excess goods. However, if the prices are too low and their is more demand than supply, that results in a shortage. Businesses are constantly adjusting their strategies to try to predict the demand and supply of products in order to satisfy the consumers needs/wants.