Look at the table. Then answer the question. At a price of $1,020, is there a shortage or a surplus?
Price | Quantity demanded | Quantity supplied
$420 | 14,000 | 8,200
$620 | 11,200 | 9,800
$820 | 8,400 | 11,400
$1,020 | 5,600 | 13,000
$1,220 | 2,800 | 14,600
At the price of $1,020, the quantity demanded is less than the quantity supplied. There is too much of the good or service for sale at that price. So, there is a surplus.
