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Market Equilibrium — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsMarket Equilibrium1 Mark
Question
Explain the changes that will take place when in a market, the demand for a good is greater than supply at the prevailing price.
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Answer

If at a prevailing price, quantity demanded is more than quantity supplied, then supplier will be motivated to increase the price of the commodity due to which demand decreases, till it reaches at the equilibrium price where quantity demanded is equal to quantity supplied.

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