Which term describes the opposite of a shortage?

Study for the Bachelor of Business and Economics (BBE) Entrance test. Focus on Math with flashcards and multiple choice questions, each accompanied by hints and explanations. Prepare effectively for your exam!

Multiple Choice

Which term describes the opposite of a shortage?

Explanation:
A shortage means demand exceeds supply at the current price. The opposite situation is a surplus, where there is more of the good available than buyers want at that price. Surpluses occur when the price is too high relative to demand, and producers may lower prices or cut output to restore balance. The other terms don’t fit here—decay refers to deterioration, and nuptials are weddings.

A shortage means demand exceeds supply at the current price. The opposite situation is a surplus, where there is more of the good available than buyers want at that price. Surpluses occur when the price is too high relative to demand, and producers may lower prices or cut output to restore balance. The other terms don’t fit here—decay refers to deterioration, and nuptials are weddings.

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