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Q: what happens to quantity supplied and demanded when there is an excess demand
A: Excess Demand occurs when Quantity demanded > Quantity supplied, and results in shortages at current prices. [ In cases of excess demand: buyers cannot buy all they want at the going price sellers find that their inventories are decreasing sellers can raise prices without losing sales prices increase until market reaches equilibrium ]
Expert answered|piash|Points 1528|
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Asked 9/30/2011 6:03:24 AM
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