Question

There is an excess demand in a market for a product when rev: 05_07_2018 Multiple Choice supply is less than demand. quantity demanded is less than quantity supplied. the current price is higher than the equilibrium price. quantity demanded is greater than quantity supplied.

Answer 1

Answer: Option (d) is correct.

Explanation:

Correct Option: Quantity demanded is greater than the quantity supplied.

Excess demand for a product occurs when quantity demanded is greater than the quantity supplied at the ongoing price. When their is a shortage of goods in a market. Excess demand is also known as shortage.

Excess supply occurs in a situation where quantity supplied is greater than the quantity demanded.