Explain the sequence of changes that will take place when there is excess demand of a commodity?

Excess demand is a dis-equilibrium condition in the market wherein consumers are demanding more than what is supplied. Since there are two many purchasers running after few goods, the price bids up which results in exclusion of some consumers and increase in supply.This goes on till the equilibrium in market is restored. Following diagram shows the movement along the curves.

 

 

 

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