Government payment to an individual, business, or other group to encourage or protect a certain type of economic activity, a situation in which the quantity supplied is greater than the quantity demanded at a given price.

You can have too many of a certain product but customers might not end up buying the product as much as you expect it to sell.

Example of surplus is when a store has a surplus of a product and is taking too much space in the warehouses, the seller notices that the price on the product is $25 and believes it is too much so he drops the price down in order to sell the product and get rid of it to be able to bring either a new product to replace the old one or if it is bought more than expected he will continue the price range and sell more of the product.

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