What is a situation called where there is more supply than demand at a given price?

A situation where there is more supply than demand at a given price is termed a surplus. This occurs when producers are willing to sell more of a product than consumers are willing to purchase at that price level. When a surplus exists, it often leads suppliers to lower their prices in order to stimulate demand and sell off the excess inventory.

In economic terms, a surplus indicates that the market price is above the equilibrium price, which is the point where supply and demand are balanced. Understanding the concept of surplus is crucial as it reflects the dynamics of market forces and helps in making informed decisions regarding production and sales strategies.