Exercise 1: Why a Price Above Equilibrium Creates a Surplus — Possible Solution
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At the equilibrium price, quantity supplied and quantity demanded are
exactly equal by definition - that's what makes it the equilibrium.
Moving to a price above that point changes both sides of the market in
predictable, opposite directions, following the two real laws already
established.

Following the law of supply, a higher price makes production more
worthwhile for sellers, so quantity supplied increases above what it
was at equilibrium - more sellers are willing to offer more of the
good at this higher, more profitable price.

Following the law of demand, that same higher price makes the good
less attractive to buyers, so quantity demanded falls below what it
was at equilibrium - fewer buyers are willing to purchase at this
higher cost.

The result is quantity supplied rising while quantity demanded falls,
at the same time, at this above-equilibrium price - meaning sellers
are now offering more of the good than buyers actually want to buy.
That gap (supply exceeding demand) is precisely what a surplus is.
This is the exact mirror image of what happens below equilibrium,
where a lower price makes quantity supplied fall and quantity demanded
rise, producing a shortage instead.

ANSWER: Above equilibrium, the law of supply causes quantity supplied
to rise (production is more profitable) while the law of demand causes
quantity demanded to fall (buying is less attractive) - producing more
of the good offered than buyers want to purchase, which is exactly
what a surplus means.

WHY THIS WORKS AS AN ANSWER
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This traces both sides of the market separately using the two named
laws, showing precisely how supply exceeding demand emerges rather
than simply asserting that a surplus results.