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Excess demand occurs when
  • a)
    Market price fall below the equilibrium price
  • b)
    Market price rise higher than the equilibrium price
  • c)
    Market price remains the same
  • d)
    none
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
Excess demand occurs whena)Market price fall below the equilibrium pri...
When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.
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Most Upvoted Answer
Excess demand occurs whena)Market price fall below the equilibrium pri...
Excess Demand. When at the current price level, the quantity demanded is more than quantity supplied, a situation of excess demand is said to arise in the market. Excess demand occurs at a price less than the equilibrium price.
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Community Answer
Excess demand occurs whena)Market price fall below the equilibrium pri...
A is the correct answer market price fall below the equilibrium price because there is the relationship between them that is both are inversely proportional to each other if prices are decrease then demand is increase
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Excess demand occurs whena)Market price fall below the equilibrium priceb)Market price rise higher than the equilibrium pricec)Market price remains the samed)noneCorrect answer is option 'A'. Can you explain this answer?
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