In elementary microeconomics, if at a given price the market supply is greater than the market demand, we say that there is ________ in the market at that price.

Introduction / Context:
This question examines your understanding of basic demand and supply terminology in microeconomics. In competitive markets, the relationship between quantity demanded and quantity supplied at a given price determines whether there is equilibrium, shortage, or surplus. Being able to label these situations correctly is fundamental for drawing and interpreting demand supply diagrams and for understanding how prices adjust in markets.

Given Data / Assumptions:

• We are looking at a single market for a particular good.
• At the given price, the quantity that sellers wish to supply is greater than the quantity that buyers wish to demand.
• There is no government price control in this basic description.
• We apply standard competitive market theory, where buyers and sellers respond to price signals.

Concept / Approach:
In a demand supply framework, equilibrium occurs when quantity demanded equals quantity supplied. When supply exceeds demand at a given price, the result is a surplus of goods in the market, which is also called excess supply. Sellers are left with unsold stock and are likely to lower prices so that demand increases and supply contracts until equality is restored. Conversely, if demand were greater than supply at a given price, that situation would be labelled excess demand or shortage. Recognising the correct term is essential for understanding how market forces operate.

Step-by-Step Solution:
Step 1: Identify the relationship. The problem states that market supply is greater than market demand at the given price.Step 2: Recall definitions. When quantity supplied is larger than quantity demanded at a price, there is a surplus or excess supply in the market.Step 3: Check alternative possibilities. Excess demand would require demand to exceed supply, which is the opposite of what is described here.Step 4: Equilibrium requires that supply equals demand, which is also not the case.Step 5: Marginal revenue is a firm level concept describing the additional revenue from selling one more unit, and is not relevant to this market level mismatch.Step 6: Therefore, the correct description of the situation is excess supply.

Verification / Alternative check:
You can visualise a standard diagram with a downward sloping demand curve and an upward sloping supply curve. If the price is set above the intersection point, you can see that the horizontal line at that high price intersects the supply curve at a larger quantity than it intersects the demand curve. The horizontal distance between these two quantities at that price is the surplus or excess supply. This graphical reasoning confirms the verbal description that supply greater than demand at a given price implies excess supply.

Why Other Options Are Wrong:
Equilibrium: At equilibrium, quantity supplied equals quantity demanded. There is no excess of either side.

Excess Demand: This occurs when quantity demanded is greater than quantity supplied, which is the opposite of the situation described.

Marginal Revenue: This is a microeconomic concept relating to firm revenue changes and does not describe market wide imbalances of supply and demand.

Common Pitfalls:
Some learners confuse which side is in excess and quickly choose excess demand without carefully reading the condition. Others may think any imbalance means there is no special term, but economics uses specific labels for clarity. Always check whether supply or demand is larger at the given price and then choose the corresponding term: excess supply when supply is larger, and excess demand when demand is larger.

Final Answer:
When market supply is greater than market demand at a given price, there is excess supply in the market.