Question

Q15. Describe the concept of excess demand and deficit demand in

detail with the help of schedule and diagram.​

Answer 1

Answer:

When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand. ... If aggregate demand of rice is, say 8,000 quin tals, this demand will be called a deficient demand and the gap of 2000 quintals will be called as deflationary gap.

Answer 2

excess demand - economics a situation in which the market demand for a commodity is greater than its market supply, thus causing its market price to rise.

deficit demand - When in an economy, aggregate demand falls short of aggregate supply at full employment level, the demand is said to be a deficient demand.