Question:
How, using Market Forces, can Excess Demand be extinguished?
Author: eric_galvaoAnswer:
-This is when Demand for the Good is Greater than the Supply. This happens when the Price is Below the Equilibrium Price. -If so, then the Price would be Forced Upwards as to Match the Demand, Supply must Increase. Only way to Reasonably Achieve that is Increasing the Price [Incentive] leading to an Equilibrium Point being Reached.
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