ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Excess Demand: the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.

Detailed explanation-2: -Key Takeaways The quantity supplied of a good or service exceeding the quantity demanded is called a surplus. If the quantity demanded exceeds the quantity supplied, a shortage exists. The equilibrium price is the price in which the quantity supplied equals the quantity demanded.

Detailed explanation-3: -In fact, at any above-equilibrium price, the quantity supplied exceeds the quantity demanded. We call this an excess supply or a surplus.

Detailed explanation-4: -When quantity demanded is greater than quantity supplied, the resulting shortage causes the price to fall. An increase in demand causes equilibrium price and quantity to rise, other things constant. The law of demand states that the quantity demanded of a good is inversely related to the price of that good.