A surplus results when:

• A. the quantity supplied exceeds the quantity demanded at a given price
• B. the quantity demanded exceeds the quantity supplied at a given price
• C. the market is in equilibrium
• D. the government imposes a price ceiling below the equilibrium price

Answer: (A)

Verified step by step guidance

1. Understand the concept of surplus in microeconomics: A surplus occurs when the quantity supplied of a good or service exceeds the quantity demanded at a given price.
2. Recall the law of supply and demand: At higher prices, suppliers are willing to supply more, but consumers demand less, potentially leading to a surplus.
3. Analyze the options given: Identify which scenario describes a situation where quantity supplied is greater than quantity demanded.
4. Recognize that a surplus is not present when quantity demanded exceeds quantity supplied (that would be a shortage), nor when the market is in equilibrium (where quantity supplied equals quantity demanded).
5. Note that a price ceiling below equilibrium price typically causes a shortage, not a surplus, because it sets a maximum price that is too low, increasing demand and reducing supply.