When There Is a Surplus in the Market, the Quantity

question 326

Multiple Choice

When there is a surplus in the market, the quantity sold is

• A) equal to the quantity supplied.
• B) equal to the quantity demanded.
• C) less than the quantity demanded.
• D) greater than the quantity bought.

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Definitions:

Business Activity

Any actions undertaken by a company as part of its operations, including production, sales, marketing, and administration.

Unit Costs

Unit Costs refer to the total expenditure incurred to produce, store, and sell one unit of a product, including all variable and fixed costs.

Variable

An element, feature, or factor that is liable to vary or change; in science and mathematics, a quantity that can assume any of a set of values.

Fixed Costs

Charges that are unaffected by changes in production or sales volumes, like lease payments, employee salaries, and insurance costs.