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1 vote
Please can see answer this fast. Briefly explain how the market mechanism relieves excess demand.​

asked
User Cherise
by
8.6k points

1 Answer

3 votes

Answer:

The decrease in supply creates an excess demand at the initial price. a. Excess demand causes the price to rise and quantity demanded to decrease. ... A decrease in demand and an increase in supply will cause a fall in equilibrium price, but the effect on equilibrium quantity cannot be determined.

Hope it helps!!!

answered
User Nikhil K R
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9.0k points
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