Excess demand exists in a market when:
A) the quantity supplied is greater than the quantity demanded.
B) demand for the good is falling.
C) the price in the market is below the equilibrium price.
D) market prices are very low.

Question

Quizplus · Accepted Answer

Excess demand occurs when the market price is below the equilibrium price, leading to a situation where the quantity demanded exceeds the quantity supplied.

Excess Demand Exists in a Market When