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dimulka [17.4K]
3 years ago
10

Which explains the connection between the law of demand and excess demand?

Geography
2 answers:
leonid [27]3 years ago
4 0

Answer:

Option A - The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.

Explanation:

Natasha_Volkova [10]3 years ago
3 0

<u>Answer:</u>

The law of demand states that "price decreases lead to greater demand and limited supply, which occur during excess demand" explains the relation between the law of "demand and excess demand".

<u>Explanation:</u>

  • The "law of demand" states that when the "price of a commodity decreases", there is a relative surge in the demand for the commodity.
  • Owing to greater demand, the supply falls short and is thus termed as 'limited'.
  • This happens because when the price decreases, the affordability of the commodity increases and the number of customers willing to buy the commodity automatically increases.
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