A surplus of computers is supplied. What does this indicate about the demand of the computers? How would the price change affect the computer company’s supply and demand equilibrium?

If a surplus of computers are supplied, then there is more supply than demand for computers. If the price of the computers changed, the demand would change accordingly (whether the price increased or decreased) and a new equilibrium would be reached at the new price.

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ewomazinoade ewomazinoade · Answer 2 · 2021-10-22T11:52:11+02:00

A surplus in the supply of computers indicate that the demand for computers is less than the supply of computers.

The price change would lead to an increase in the equilibrium quantity of computer demanded and supplied.

A surplus in supply means that the quantity supplied of a good exceeds the demand for the good. It means that the demand for the good is less than the supply of the good. When the supply of a good increases, the equilibrium price of the good decreases and the equilibrium quantity of the good increases. On a demand and supply curve, a surplus would be shown as a rightward shift of the supply curve.

As a result of the decline in price, the quantity demanded of computers would increase. This would lead to a rise in equilibrium price and quantity.

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