Which explains the connection between the law of demand and excess demand?

The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess

demand

The law states that increases in price increases leads to greater quantity demanded and limited supply which occurs

during excess demand

The law states that decreases in price leads to greater supply and equilibrium which occurs during excess demand

The law states that increases in price leads to greater supply and equilibrium which occurs during excess demand

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Krish

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9 July, 11:45

Which explains the connection between the law of demand and excess demand?

The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess

demand

The law states that increases in price increases leads to greater quantity demanded and limited supply which occurs

during excess demand

The law states that decreases in price leads to greater supply and equilibrium which occurs during excess demand

The law states that increases in price leads to greater supply and equilibrium which occurs during excess demand

Save and Exit

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Answers (1)

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Marissa Roman · Answer 1

The connection between the law of demand and excess demand is explained as the law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.

Explanation:

Law of demand: It states that the price and quantity demand of a product or service are inversely related to each other. The demand for the good is reduced, when the price of the same good is increased.

Excess demand: The situation of excess demand arises when the quantity of the product demanded is more than the quantity of the product supplied. As the demand of the product increases, the market price of the product is also increased.