Surplus refers to the amount of something that remains when the demand for it has been met. In economics, it often describes the excess of production over consumption. For example, if a farmer grows 100 apples but only sells 80, the surplus is 20 apples. This surplus can be stored, sold later, or used in other ways. In a broader context, surplus can apply to various resources, such as money or goods. A budget surplus occurs when income exceeds expenses, allowing for savings or investment. Understanding surplus is essential for effective resource management in both personal finance and business operations.