surpluses

A surplus occurs when the quantity of a good, service, or resource available exceeds the demand for it at current prices. For example, if a farm produces more wheat than people want to buy at the current price, the excess wheat creates a surplus. This often leads sellers to lower prices to sell the extra stock. Surpluses can result from overproduction, weak demand, or both, and they signal that the market is out of balance, prompting adjustments to restore equilibrium between supply and demand.