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surplus

SUR-pluhs /ˈsɜːrpləs/

nounadjectiveB2GREGMATSATIELTS

generalformal

An amount of something left over when requirements have been applied; excess of production or supply over demand.

In economics, consumer and producer surplus measure extra market benefit, whereas trade or budget surplus indicates excess financial receipts.

The story behind the word. From Medieval Latin 'superplus', joining 'super' ('over') and 'plus' ('more'). Classical economists studied how agricultural surplus permitted towns to grow, while neoclassical economists quantified 'consumer surplus'—the financial gain consumers get when paying less than their maximum reservation price.

Word relationships

excess: Implies an unneeded or overly large amount, while surplus indicates useful economic reserves.
overplus: An archaic term for surplus.

deficit: An shortfall where expenditure or demand exceeds income or supply.
shortage: A market state where demand exceeds available supply.

Commonly confused with

shortage: Surplus is extra supply remaining; shortage is insufficient supply to meet demand.

Word family

surplus (adjective): More than what is needed or used; excess.

Collocations

consumer surplus
producer surplus
budget surplus
trade surplus

Example sentences

"When prices are fixed above equilibrium, a market surplus develops because producers supply more goods than consumers buy." Market Economics
"The nation maintained a substantial trade surplus by exporting high-tech equipment across Asia." International Trade

Memory hook

SUR (super/over) + PLUS (more) = super extra amount left over. The excess quantity left over.

When not to use

Do not confuse economic surplus with excess trash or unwanted waste; surplus represents valid, usable excess.

Fun facts

Consumer surplus explains why you feel happy when buying a shirt priced at $20 when you were fully prepared to pay $50 for it.