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

1. The law states that price decreases lead to greater demand and limited supply, which occur during excess demand.

2. The law states that price increases lead to greater demand and limited supply, which occur during excess demand.

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

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

Question

Social Studies

Jaylene Dickerson

7 September, 21:44

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

1. The law states that price decreases lead to greater demand and limited supply, which occur during excess demand.

2. The law states that price increases lead to greater demand and limited supply, which occur during excess demand.

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

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

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Answers (1)

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Sadie Pace · Answer 1

The connection between the law of demand and excess demand is that law of demand states that it is stated that if the factors remain equal, the higher the price, the lesser consumer is going to be demanding for that good, whereas the excess demand is the exact opposite; the lower the price, the more demands you'll get.