In economics, the market effect that occurs when a binding price floor leaves sellers with more output than buyers want is a surplus.
At a price above equilibrium, the quantity supplied exceeds the quantity demanded. The difference is the amount sellers would like to sell but buyers do not purchase at that legal or supported price. In agricultural markets, such unsold production may be stored, purchased by a government, exported, or destroyed, depending on the policy.
A surplus differs from scarcity in everyday language. In the supply-and-demand model, a shortage means quantity demanded exceeds quantity supplied, while a surplus means quantity supplied exceeds quantity demanded. Both describe a gap at a particular price, not a permanent condition of the entire economy.
A surplus can put downward pressure on price when prices are free to adjust. If a price floor is enforced, however, that adjustment may be blocked. The size and persistence of the surplus depend on the floor’s level, demand conditions, supply flexibility, and policy enforcement.