Is there a surplus or a shortage of posters?
shortage surplus
A poster company printed up 100 posters with its latest design. Posters cost $15 each. At that price, there are 80 people who want to buy one.
There is a surplus if there is too much for sale at a given price.
There is a shortage if there is not enough for sale at a given price.
Surpluses and shortages usually happen when people who are selling goods or services charge too much or too little.
When the price is too high, consumers will not want to buy much of the good or service. The quantity demanded will be less than the quantity supplied. So, there will be a surplus.
When the price is too low, too many consumers will want to buy the good or service. The quantity demanded will be more than the quantity supplied. So, there will be a shortage.
At the current price, there are too many posters for sale. There are 100 posters for sale, but only 80 people want to buy one.
So, there is a surplus of posters. The poster company will not get any money for the leftover posters.