what is excess demand for a good in the market? explain its chain of effect in the market for that good? (use diagram)

Dear student,

Excess demand refers to a situation in which a demand of a good in market exceeds its supply. 
With increase in demand of a good, the competition will increase, the number of suppliers will increase in the market which in turn will increase equilibrium price and quantity.


  • 9
What are you looking for?