michealthompson40
michealthompson40 michealthompson40
  • 04-03-2020
  • Business
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When there is excess demand, there is

When there is excess demand there is class=

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kudzordzifrancis
kudzordzifrancis kudzordzifrancis
  • 11-03-2020

Answer:

disequilibrium

Explanation:

An equilibrium occurs when quantity demanded equals quantity supplied.

When there is excess demand, supply is not equal to demand, hence there is disequilibrium.

Price floors, also called minimum prices are set by the government when prices are falling too low.

Price floors bring about excess supply.

Excess demand will cause price to rise, forcing the government to set a maximum price, called price ceiling.

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