Excess demand
What Excess demand means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Excess demand
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Reference: Pearson Edexcel
A situation where the price is below equilibrium and a shortage occurs, so consumers bid the price up.
Happens when the price is below equilibrium, where quantity demanded outstrips quantity supplied.
Topics that use Excess demand
- Price determination (Pearson Edexcel A-Level)
Related terms
- Ceteris paribus
- Excess supply
- Incentives and rationing
- Market dynamics
- Market equilibrium
- Market-clearing price
- Non-price determinants
- Price mechanism
Using Excess demand in the exam
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