Surplus
Excess supply relative to demand at current price.
Formula
Surplus = Quantity Supplied − Quantity Demanded (at current price)
Real World
In 2023, Europe's unusually warm winter left gas storage facilities overflowing, creating a supply surplus that pushed wholesale energy prices sharply downward.
Exam Focus
State the market mechanism clearly: surplus → downward pressure on price → quantity demanded rises until equilibrium is restored — show the chain.
How well did you know this?