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

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

2) The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.

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

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

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24 March, 01:22

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Parker Bryant · Answer 1

2) The law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.