Question

There are more jeans in the stores than consumers are willing to buy, at the given price. This means that there is a _____ of jeans.

Answer 1

The correct answer is A) surplus.

There are more jeans in the stores than consumers are willing to buy, at the given price. This means that there is a surplus of jeans.

This means that the quantity of jeans in the store is much more than the number of consumers that want to buy jeans or are actually buying jeans. The shop owner knows that it has to do something to sell these jeans. Maybe the season is not the better one to sell them, or the price is to hight for the quality or necessity of the jeans and the store needs to lower the price or offer discounts.

The other options of the question were B) shortage. C) maximum quantity.

Answer 2

There are more jeans in the stores than consumers are willing to buy, at the given price. This means that there is a excess of jeans.

Here is a quick explanation:

Economically speaking, this excess is explained as an imbalance in the demand and supply of jeans. What does that mean? It means that the supply of jeans, that is, the amount of jeans being offered to people, is higher than the demand for these jeans, that is, it is higher than the consumer demand for these jeans and this provokes the excess product at the factory or store.