1.
The cause of a surplus is when quantity that are
produced are not equivalent with the demanded quantity and by this, there is
likely an effect of the supply or demand to be in excess, creating surplus.
2.
It can be quickly resolved if the quantity
produced is as equal with demand quantity.
3.
The determinants of inelastic demand are the
following;
·
Categories of product
·
Substitutes (few)
·
Less time given
·
Necessities
