Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.

Explain the meaning of excess demand and excess supply with the help o

1.	Explain the meaning of excess demand and excess supply with the help of a schedule. Explain their effect on equilibrium price.
Answer» SOLUTION :Excess demand refers to a SITUATION where market demand is more than the market SUPPLY at the PREVAILING price. Excess supply refers to a situation where market supply is more than the market demand at the prevailing price.