Surplus

Surplus refers to the amount that remains when a quantity is greater than what is needed or required. In Economics, it often relates to the excess of income over expenditure, or the difference between the supply of a product and the demand for it.

For example:

• A farmer produces 1,000 apples but only sells 800, resulting in a surplus of 200 apples.
• A government has a Budget of $10 million but only spends $8 million, creating a Budget surplus of $2 million.

In cases such as:

• During a sale, a store orders 500 shirts but sells only 400, leading to a surplus of 100 shirts that may need to be discounted or carried over to the next season.
• A country exports more goods than it imports, resulting in a trade surplus, which can strengthen its economy.