Question

If, at the current price, there is a surplus of a good, then:

a. sellers are producing more than buyers wish to buy.
b. the market must be in equilibrium.
c. the price is below the equilibrium price.
d. quantity demanded equals quantity supplied.

Answer 1

If there is a surplus of a good, it means that the price is below the equilibrium price and the quantity supplied exceeds the quantity demanded.

Step-by-step explanation:

If, at the current price, there is a surplus of a good, then the price is below the equilibrium price. A surplus occurs when the quantity supplied exceeds the quantity demanded. This means that sellers are producing more than buyers wish to buy.