Question

explain the effect of excess demand of a commodity on its price,quantity demanded and quantity supplied​

Answer 1

Explanation:

the rate of products is rise and the available is decreased

Answer 2

An excess demand in the market implies that at a certain price in the market,the quantity demanded of a commodity is greater than its quantity supplied . The suppliers are willing to supply more of that commodity than the demand for it by the consumers.

Explanation:

If the quantity demanded of a product exceeds its supply, the excess demand would induce a price increase in the market, thereby, encouraging the suppliers to increase supply. Hence, due to higher price and potential for higher revenue, the quantity supplied in the market would increase.However, the quantity demanded would decrease as the commodity has now become more expensive.Such modification of quantity supplied and demanded would cease at the price level where both will be equal,which is the equilibrium price in the market.