When Does a Surplus Occur

question 51

Multiple Choice

When does a surplus occur?

• A) When the quantity supplied is less than the quantity demanded
• B) When the quantity demanded is less than the quantity supplied
• C) When a market only sells secondary goods
• D) When producers see a need to increase the price of the good

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Definitions:

Price of Radios

The amount of money required to purchase a radio, influenced by factors such as brand, technology, and market demand.

Very Elastic Demand

A situation where the demand for a product or service significantly changes in response to changes in its price.

Arnold Palmer

A renowned American professional golfer and businessman known for his sportsmanship and business acumen.

Bargain Set

A concept in economics and game theory where the set includes all deals or agreements that are beneficial to all parties involved compared to their next best alternatives.