Definition: Producer surplus is defined as the difference between the amount the producer is willing to supply goods for and the actual amount received by him when he makes the trade. It is shown graphically as the area above the supply curve and below the equilibrium price. …

A budget surplus occurs when government brings in more from taxation than it spends. Budget surpluses are not always beneficial as they can create deflation and economic growth. Budget surpluses are not necessarily bad or good, but prolonged periods of surpluses or deficits can cause significant problems.

surplus

• excess, surfeit, overabundance, superabundance, superfluity, oversupply, oversufficiency, glut, profusion, plethora.
• remainder, residue, remnant.
• remains, leftovers.

surplus. Antonyms: deficiency, deficit, shortcoming. Synonyms: redundancy, remainder, rest, overplus, residue, excess, balance.

antonyms of shortage

• abundance.
• enough.
• excess.
• plenty.
• surplus.
• sufficiency.
• ample.

1 : scarcity that makes dear specifically : famine. 2 : an inadequate supply : lack a dearth of evidence.

Shortage Synonyms – WordHippo Thesaurus….What is another word for shortage?

A shortage is a situation in which demand for a product or service exceeds the available supply. When this occurs, the market is said to be in a state of disequilibrium. Usually, this condition is temporary as the product will be replenished and the market regains equilibrium.

Shortage = Quantity demanded (Qd) > Quantity supplied (Qs) A surplus occurs when the quantity supplied is greater than the quantity demanded.

If a surplus exist, price must fall in order to entice additional quantity demanded and reduce quantity supplied until the surplus is eliminated. If a shortage exists, price must rise in order to entice additional supply and reduce quantity demanded until the shortage is eliminated.

a. Market equilibrium occurs at the point where market clears, that is, where quantity supplied is equal to quantity demanded. In other words, equilibrium price is the price at which there exists neither surplus nor shortage.

Which of the following would cause a surplus of newsprint? The demand for newsprint decreases, and the price does not change. An increase in demand and a decrease in supply.

At $3.40, shortage of 13, at $4.9, surplus of 21, at $4.6, surplus of 14, at $3.7, shortage of 7.

Shifts in the supply curve are directly related to producer surplus. If supply increases, producer surplus increases. If supply decreases, producer surplus decreases. Price elasticity of supply is inversely related to producer surplus.

Consumer surplus is defined, in part, by the price of the product. Assuming that there is no shift in demand, an increase in price will therefore lead to a reduction in consumer surplus, while a decrease in price will lead to an increase in consumer surplus.

Whenever there is a surplus, the price will drop until the surplus goes away. When the surplus is eliminated, the quantity supplied just equals the quantity demanded—that is, the amount that producers want to sell exactly equals the amount that consumers want to buy.

A surplus occurs when the quantity supplied of a good exceeds the quantity demanded at a specific price. A shortage, also called excess demand, is the amount by which the quantity of a good demanded by consumers is greater than the quantity supplied by producers and occurs when prices are below the equilibrium price.

What represents a shortage in the market? Market price is less than equilibrium price.

A surplus implies the government has extra funds. These funds can be allocated toward public debt, which reduces interest rates and helps the economy. A budget surplus can be used to reduce taxes, start new programs or fund existing programs such as Social Security or Medicare.

Impact on growth. If the government is forced to increase taxes / cut spending to meet a budget surplus, it could have an adverse effect on the rate of economic growth. If government spending is cut, then it will negatively affect AD and could lead to lower growth. A budget surplus doesn’t have to cause lower growth.

Consumer surplus reflects the amount of utility or gain customers receive when they buy products and services. Consumer surplus is important for small businesses to consider, because consumers that derive a large benefit from buying products are more likely to purchase them again in the future.

Sometimes the market is not in equilibrium-that is quantity supplied doesn’t equal quantity demanded. When this occurs there is either excess supply or excess demand. In order to stay competitive many firms will lower their prices thus lowering the market price for the product. …

In economics, an excess supply or economic surplus is a situation in which the quantity of a good or service supplied is more than the quantity demanded, and the price is above the equilibrium level determined by supply and demand. It is the opposite of an economic shortage (excess demand).

Impact of shortages in the economy When there is a shortage of goods, it will encourage consumers to queue and try and get the limited goods on sale. Queues are an inefficient use of time as people who spend time in a queue could be doing something more useful. Increase in demand for substitute goods.

Excess demand gives rise to an inflationary gap. Inflationary gap refers to the gap by which actual aggregate demand exceeds the aggregate demand required to establish full employment equilibrium.