What is another name for excess supply?

Excess supply occurs when the quantity of a good or service supplied exceeds the quantity demanded at a given price. This situation leads to a surplus in the market, where goods remain unsold because they are not purchased at the current price level. A surplus signals to producers that the price might be too high, prompting them to lower prices to encourage sales and restore balance in supply and demand.

The term "deficit" refers to a situation where demand exceeds supply, which is the opposite of excess supply. "Shortage" similarly indicates that there is not enough of a good available to meet demand, while "equilibrium" describes a state where supply equals demand, with no surplus or shortage present. Therefore, surplus accurately describes the condition of excess supply, making it the correct answer.