Question

Define Equilibrium price. Explain the changes that will take place when in a market the demand for good is less than its supply at prevailing price?​

Answer 1

Answer:

By the definition, an equilibrium price refers to the price at which market demand is equal to market supply (i.e. there is no excess demand or excess supply). When price prevailing in the market is higher than an equilibrium price, demand will be less than supply i.e. there is excess an supply in the market

Explanation:

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