If equilibrium price of a good is greater than its market pirce, explain all the changes that will take place in the market. Use diagram.

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  • -5

It was a question of Excess Supply, I think..

There will be competition amongst sellers and gradually the price will come down . Wrote something like that..

  • -4

there will be excess demand at marked price because market price is less than equilibrium price. and so there will be competition among buyers and market price will go up. market supply will extend n market demand will contract.....

  • 19

excess demand is the right answer .....................:P

  • -3
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