Surplus
A situation in which the quantity of a good supplied is more than the quantity demanded
Real World Example
In history, surpluses often occurred during agricultural developments when farmers produced more food than people needed, leading to stored goods and economic growth. This was important because it allowed societies to trade, save for difficult times, and support larger populations. Today, surplus still matters as it influences prices and availability of goods; for example, if there's a surplus of oranges, prices might drop, making them more affordable. On the other hand, having too much of a product can lead to waste and financial losses for producers. Understanding surplus helps consumers and businesses make informed decisions about buying, selling, and managing resources efficiently.
