Concept:A market price above equilibrium creates excess supply.
Explanation:At the equilibrium price of
$4.00 per kg, quantity demanded equals quantity supplied.
If the price rises to
$6.00 per kg, it is now above the equilibrium price.
At this higher price, sellers increase the quantity of beef they supply.
Consumers, however, reduce the quantity of beef they demand.
This causes quantity supplied to become greater than quantity demanded.
As a result, an excess supply or surplus occurs in the beef market.
Answer:A. surplus in the market.