The correct answer is Option 1: i, iii, vi
- i. Competition among buyers: This is true. When demand exceeds supply, buyers compete for the limited available goods, often leading to higher prices or other forms of competition.
- ii. Competition among sellers: This is false. Excess demand means sellers have more buyers than goods, so they don't need to compete.
- iii. Increase in price: This is true. Excess demand puts upward pressure on prices as buyers are willing to pay more.
- iv. Decrease in price: This is false. Excess demand leads to price increases, not decreases.
- v. Surplus of commodity in the market: This is false. Excess demand means there's a shortage, not a surplus.
- vi. Deficit of commodity in the market: AThis is true. Excess demand means demand is greater than supply, resulting in a deficit or shortage.
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