[This is part of the series: The Complete Guide To Economics 101.]
What is an economic surplus?
An Economic Surplus is an imbalance of supply and demand where quantity supplied is greater than quantity demanded.
This imbalance creates a surplus of available goods and services.
It is important to remember, surpluses are always caused by price floors.
An example of a surplus the minimum wage. There is a surplus of people willing to work at a set wage. This is called unemployment.
Graphically, a price floor looks like this:
