Answer:
demand is less than supply.
Explanation:
Definition : Surplus is when : Demand < Supply
Alternate Name : This can also be termed as 'Excess Supply'
Cause : It is usually at price higher than equilibrium price when : supply (directly) related to price > demand (inversely related to price).
This higher price leads to quantity supplied more than quantity supplied ; creates surplus of the commodity
Effect : It creates competition among sellers & reduces the price. Price fall increases quantity demanded & decreases quantity supplied ; till they are equalised again & equilibrium is restored
