Question
A situation where there is more as than qd is referred to as excess demand excess supply diminishing returns excess shortage
Answer
4.5
(201 Votes)
Eilidh
Master · Tutor for 5 years
Answer
B
Explanation
According to the principles of economics, scenarios where there are more goods than demanded by the market (more 'gs' than 'od'), it's referred to as excess supply. This type of situation occurs when the quantity supplied of a good or service exceeds the quantity demanded. This could happen when the price of goods, services, or resources is above its market equilibrium value, leading to competitive downward pressures on it. "Excess demand" corresponds to a situation where demand is greater than supply. "Diminishing returns" is an economic concept which states that an increasing number of new employees or capital, while holding all other inputs constant, will at some point yield lower incremental per-unit returns, and "excess shortage" is not a recognized term in economics.