Here is a surplus in a market for a product when rev: 05_07_2018 Multiple Choice
demand is less than supply.
the current price is lower than the equilibrium price.
quantity demanded is greater than quantity supplied.

demand is less than supply.

Explanation:

Definition : Surplus is when : Demand < Supply

Alternate Name : This can also be termed as 'Excess Supply'

Cause : It is usually at price higher than equilibrium price when  : supply (directly) related to price > demand (inversely related to price).

This higher price leads to quantity supplied more than quantity supplied ; creates surplus of the commodity

Effect : It creates competition among sellers & reduces the price. Price fall increases quantity demanded & decreases quantity supplied ; till they are equalised again & equilibrium is restored

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answer; closing the loop;