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3 years ago

What happens when demand exceeds supply

Mathematics

2 answers:

vlabodo [156]3 years ago

4 0

Answer:

Hence, When the demand exceeds supply , The shortage occurs.

Step-by-step explanation:

When the demand exceeds the supply then it results in the shortage of the particular product.

The demand exceeds only when the prices are much lower as compared to previous price of the product. So, when the prices are lower all the people want to buy the products on a high scale thus giving a high increase in the demand of the product.

And the the demand for any product increases very suddenly then the supply cannot meet the requirements of the demand and as a result the shortage of the product occurs.

Also, When the shortage occurs with a high demand the prices for the product increases rapidly in order to minimize the demand of the people and thereafter it can meet the demands of the people.

Hence, When the demand exceeds supply , The shortage occurs.

melomori [17]3 years ago

3 0

<span>The price usually goes up. If lots of people want something, you have to pay more to get it.</span>

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