Question

When there is excess demand in the economy, price level tends to:
Rise
Fall
Remains constant
First increase and then decrease ​

Answer 1

Answer:

•●○ Rise○●•

Explanation:

● Excess demand will cause the price to rise, and as price rises producers are willing to sell more, thereby increasing output. 1. A change in supply will cause equilibrium price and output to change inopposite directions ●.