Question

What is market surplus?

• A. The portion of agricultural produce which is sold in the market by the farmers.
• B. Portion of donation money given to farmers.
• C. Portion of industrial produce sold by firms.
• D. Portion of imported products not bought by any individual.

Answer 1

Answer: (D)

Portion of imported products not bought by any individual.

A Market Surplus occurs when there is excess supply- that is quantity supplied is greater than quantity demanded. In this situation, some producers won't be able to sell all their goods. This will induce them to lower their price to make their product more appealing.