Producer surplus

Where an estate on the market for less in demand, as it is offered, there is a surplus. In a buyer's market, as it is often on agricultural products in the course of development of a country from a developing country to a developed country is the case, there is a surplus. In this case, determine the demand, so the buyer 's market situation. The fact that the seller will try in this situation to reduce their prices in order to sell their goods on the market yet can, in a perfect market, the price of each good in the course of time will reach the market equilibrium price.

The opposite of a supply surplus is the excess demand.

  • Microeconomics
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