Economy, asked by kunal66198, 1 year ago

if at a given price of commodity,there is excess demans ,how will the equilibrium price be reached?explain by diagram​

Answers

Answered by Anonymous
9

Excess demand means that the demand for the commodity is higher than its supply or the market price is lower than the equilibrium price. ... This increased price leads to an increase in supply and a fall in demand leading a new equilibrium where quantity demanded equals quantity supplied..

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