If the price of an article is above the equilibrium price, then there is ________.

Why a Price Above Equilibrium Creates a Surplus When the price of an article is higher than the equilibrium level, two things happen simultaneously: Law of Supply: Producers are incentivized by the higher price to produce and supply more of the article. Law of Demand: Consumers are discouraged by the higher price and will demand fewer units of the article. As a result, the Quantity Supplied ($Q_s$) becomes greater than the Quantity Demanded ($Q_d$). This excess supply that remains unsold on the shelves is called a Surplus (also known as excess supply).