When There Is a Surplus

question 245

Multiple Choice

When there is a surplus

• A)quantity demanded is greater than quantity supplied.
• B)quantity supplied is greater than quantity demanded.
• C)quantity demanded is equal to quantity supplied.

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Definitions:

Primary Industry

The sector of the economy that extracts and harvests natural resources directly from the Earth, such as agriculture, mining, and forestry.

Normal Goods

Goods for which demand increases as the income of the buyer increases, and vice versa.

Income Increase

A rise in the amount of money received, especially on a regular basis, through work or investments.

Substitute

A product or service that can be used in place of another to satisfy the same want or need.