When there is an excess demand for a good,there is:

Question

Quizplus · Accepted Answer

When there is excess demand for a good, buyers are willing to pay more to obtain it. This leads to an increase in the price of the good due to the pressure of high demand. Therefore, option C is correct. Option A is incorrect because it states "downward pressure on price", which is not true when there is excess demand. Option B and D are also incorrect because they refer to "unwanted inventories," which is not a consequence of excess demand, but rather of excess supply.

When There Is an Excess Demand for a Good,there Is