Which of the following occurs when an excess demand occurs in the market for a good? O Quantity supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. Quantity supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.

Which of the following occurs when an excess demand occurs in the market for a good? O Quantity supplied exceeds quantity demanded and the price falls, which encourages more production and less consumption. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price down, which encourages more production and less consumption. Quantity supplied exceeds quantity demanded and the price rises, which encourages more production and less consumption. Quantity demanded exceeds quantity supplied and the market mechanism pushes the price up, which in turn encourages more production and less consumption.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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