When quantity supplied exceeds quantity demanded, _____ exists. equilibrium a surplus a shortage fixed supply

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Hannahchilegirl6505idn Hannahchilegirl6505idn

05-07-2022
Business

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When quantity supplied exceeds quantity demanded, _____ exists. equilibrium a surplus a shortage fixed supply

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Vipinkumar69547idn Vipinkumar69547idn · Answer 1 · 2022-07-14T07:01:54-04:00

When quantity supplied exceeds quantity demanded, a shortage exists.

What happens when quantity supplied exceeds quantity demanded?

If more people want a good or service than can be supplied at the going rate, there is a shortage, which pushes prices up.
With everything else remaining the same, an increase in demand will result in a rise in the equilibrium price and an increase in supply.
The only price at which the quantity provided and the amount demanded are equal is at the equilibrium.
Quantity supplied exceeds quantity sought at a price above equilibrium, such as 1.8 dollars, leading to an excess supply.
When the quantity given and demanded are equal, an equilibrium is reached. The amount demanded will exceed the quantity provided if the price is below the equilibrium level. A shortage or an excess of demand will exist.

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What happens when quantity supplied exceeds quantity demanded?

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