Answer :
If the quantity demanded of a good is greater than the quantity supplied of that good, then the price of the good is greater.
Why does the price rises?
- A good's price will rise until it reaches the equilibrium price if there is a difference between the quantity demanded and the quantity supplied of the good at the current price.
- Excess demand is when there is a surplus of demand relative to supply at the price being offered. There is a shortage for this.
- Excess Supply: When there is a surplus of a good or service at a given price, there is less demand than there is supply. Additionally, a surplus is what this is.
- Demand outstrips supply, or when the price is too low, and a shortage results. Due to consumer competition to buy the product, however, shortages frequently result in price increases. In order to increase demand, companies may therefore delay production. They are able to raise the price because of this.
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