Is there a surplus or a shortage of tickets?
surplus shortage
There are 300 concert tickets for sale. Tickets cost $20 each. At that price, there are 200 people who want to buy a ticket.
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 tickets for sale. There are 300 tickets for sale, but only 200 people want to buy a ticket.
So, there is a surplus of tickets. The ticket seller will not get any money for the leftover tickets.