If the quantity supplied is greater than the quantity demanded, this leads to:

A. a surplus
B. a supply breakdown
C. an equilibrium
D. a shortage



Answer :

Final answer:

A surplus occurs when supply exceeds demand, creating downward pressure on prices. Conversely, a shortage arises when demand surpasses supply, leading to upward price pressure. Market equilibrium is achieved when supply matches demand.


Explanation:

A surplus exists when the quantity supplied of a good or service exceeds the quantity demanded at the current price, causing downward pressure on price. Conversely, a shortage occurs when the quantity demanded exceeds the quantity supplied, leading to upward pressure on price. The price mechanism plays a crucial role in ensuring that the market reaches an equilibrium where quantity supplied equals quantity demanded.


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