Both excess supply and excess demand are a result of

Posted By Admin @ September 03, 2022


Both excess supply and excess demand are a result of



Excess demand and excess supply only affect the market as a result of disequilibrium.

What is Disequilibrium?

  • This is a scenario where the quantity supplied does not match the quantity demanded at a given price.
  • Leads to a lost of balance in economy as well as price problems.

When the demand is not enough to meet the supply, this disequilibrium is called excess supply. The reverse is excess demand.

In conclusion, option B is correct.

Find out more on disequilibrium at

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