Question

features of excess demand?? ​

Answer 1

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Excess demand is the situation where the price is below its equilibrium price. The quantity supplied is lower than the quantity demanded by the consumers. ... As price increases the suppliers will start producing more but the demand from buyers will decrease. This will drive the price and quantity to its equilibrium level.

Answer 2

Answer:

Excess demand refers to the situation when aggregate demand (AD) is more than the aggregate supply (AS) corresponding to full employment level of output in the economy. It is the excess of anticipated expenditure over the value of full employment output. ADVERTISEMENTS: Excess demand gives rise to an inflationary gap.

Explanation:

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