When the quantity of a good supplied at a given price is greater than the quantity demanded, it results in a situation known as excess supply, which is also referred to as a surplus. Excess supply occurs when producers are supplying more of a good than consumers are willing to buy at that particular price.
The presence of excess supply in a market typically leads to downward pressure on prices. Producers may need to lower their prices to encourage consumers to purchase the surplus goods. This downward adjustment in price helps to eventually reach a new equilibrium where the quantity supplied equals the quantity demanded.
In summary, when the quantity of a good supplied exceeds the quantity demanded at a given price, it leads to excess supply or a surplus, prompting a decrease in prices until equilibrium is reached in the market.
