The graph shows excess demand. Which explains why the price indicated by p2 on the graph is lower than the equilibrium price?

asked Feb 8, 2019 59.3k views

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6 votes

Answer:

Option A - As prices fall, quantity demanded goes up

Step-by-step explanation:

Sshepel answered Feb 8, 2019

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7 votes

When prices go down, the demand of the good goes up because people want to buy the good at a lower price than beforehand.

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