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If the price of a shirt is ₹20, the quantity demanded is 100 and the quantity supplied is 120, what is happening in the market?

easy MCQ 2 marks Class 7 · Social and Political Life · A Shirt in the Market
  1. Shortage of shirts
  2. Surplus of shirts
  3. Equilibrium of shirts
  4. None of the above
Answer
Surplus of shirts

The correct answer is Surplus of shirts — Therefore the correct situation is a surplus of shirts.

Step-by-step solution

  1. At the price of ₹20, buyers want to buy 100 shirts but sellers are offering 120 shirts.
  2. Since quantity supplied exceeds quantity demanded, there are more shirts available than people want to buy.
  3. This excess of supply over demand is called a surplus.
  4. Therefore the correct situation is a surplus of shirts.
Common mistake: Confusing shortage with surplus

Concept tested: Market equilibrium

Published · How this solution was prepared and checked

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