Practicing Success
Practicing Success
CUET Preparation Today
| Suppose in a perfectly competitive market, given the market demand and market supply curves, the equilibrium occur at price of Rs. 350. At equilibrium price, excess demand will be |
Positive Negative Zero undefined |
| Zero |
| Equilibrium in a perfectly competitive market can be defined as zero excess demand-zero excess supply situation. At equilibrium price, market demand equals market supply. So, excess supply or excess demand means that either of them is greater than the other. And this is not possible at equilibrium. So, at equilibrium, there is zero excess demand and zero excess supply. |
