if there is excess demand in a market which of the following is true? the quantity demanded is the…
if there is excess demand in a market which of the following is true? the quantity demanded is the equilibrium quantity. the price in a market is set below the equilibrium price. the quantity supplied is the equilibrium quantity. the price in a market is set above the equilibrium price.
Answer
Brief Explanations:
Excess demand occurs when the quantity demanded is greater than the quantity supplied at the current price. This happens when the market price is set below the equilibrium price. At the equilibrium price, quantity demanded equals quantity supplied. When the price is below equilibrium, consumers want to buy more than producers are willing to sell.
Answer:
The price in a market is set below the equilibrium price.