What characterizes a surplus in a market?

A surplus in a market is characterized by situations where the quantity of a good or service supplied exceeds the quantity demanded at a particular price level. This typically occurs when prices are set too high, leading consumers to purchase less of that good while producers continue to supply it, thinking they can sell more at the elevated price. Therefore, option A accurately reflects this situation by stating that there are high prices with less quantity demanded than supplied, indicating a discrepancy where supply outstrips demand, which leads to excess inventory in the market.

In contrast, the other options either describe conditions that are not indicative of a surplus or refer to scenarios that could lead to different market dynamics. Low prices, for example, in option B, would generally stimulate demand rather than indicate a surplus situation. Option C describes market equilibrium, which is the state where supply equals demand, while option D suggests increased production based on consumer preference, typically associated with a scenario of higher demand rather than a surplus.