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vova2212 [387]
3 years ago
5

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

Business
1 answer:
OLEGan [10]3 years ago
7 0

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!!!

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