What economic condition results when producers are unable to sell all the goods they have produced?

The situation described occurs when producers create more goods than consumers are willing or able to purchase at a given price level, resulting in an excess supply of those goods in the market. This excess supply is referred to as a surplus. A surplus indicates that there is not enough demand for the quantity of goods produced, which can lead to various market adjustments, such as price reductions to encourage consumption or a slowdown in production.

In contrast, a shortage occurs when the demand for a product exceeds its supply, meaning consumers wish to purchase more than what is available. Stagnation refers to an economy that is experiencing little or no growth, often accompanied by high unemployment and low levels of demand in the market. Disequilibrium signifies a state where supply and demand are not in balance, which can occur in various forms, including both surpluses and shortages. Thus, the presence of a surplus specifically highlights the inability of producers to sell all goods produced, making it the correct choice in this context.