In a commodity market, excess demand exists when:

CA Foundation · Business Economics · MTP · September 2024
In a commodity market, excess demand exists when:
(A) A. market price is greater than equilibrium price
(B) B. equilibrium price is greater than market price
(C) C. equilibrium price is not equal to market price
(D) D. government fixes the price

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. equilibrium price is greater than market price

Topics: Price Determination in Different Markets

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