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Deficient demand occurs when
  • a)
    Market price fall below the equilibrium price
  • b)
    Market price rise higher than the equilibrium price
  • c)
    Market price falls below the equilibrium price
  • d)
    Market price remains the same
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Deficient demand occurs whena)Market price fall below the equilibrium ...
Deficient demand refers to the situation when aggregate demand (AD) is less than the aggregate supply (AS) corresponding to full employment level of output in the economy.
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Most Upvoted Answer
Deficient demand occurs whena)Market price fall below the equilibrium ...
Surplus and shortage:If the market price is above
the equilibrium price, quantity supplied is greater than quantity 
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Deficient demand occurs whena)Market price fall below the equilibrium priceb)Market price rise higher than the equilibrium pricec)Market price falls below the equilibrium priced)Market price remains the sameCorrect answer is option 'B'. Can you explain this answer?
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