Excess Quantity Supplied

The amount by which quantity supplied exceeds quantity demanded at a given price.

Suppose for a given price of U.S. $5 the amount of burgers that is demanded in an economy is 20. If the fast food restaurant is willing to produce and sell 100 burgers at the price of U.S. $5, then there is an excess quantity supplied or a surplus of burgers. This means suppliers are frustrated because they can not find customers that are willing to buy burgers at the current price of U.S. $5. This surplus offers an incentive for those frustrated sellers to offer a lower price in order to attract customers from other restaurant owners, which results in price cutting and a push towards the equilibrium price.