CUET Preparation Today
The diagram above shows the situation of? |
Excess demand Excess supply Equilibrium Both 2 and 3 |
Both 2 and 3 |
The correct answer is Option 4: Both 2 and 3 It can be clearly seen that at price p*, there is equilibrium in the market with market demand and supply curve intersecting each other. But at price pf, supply is greater than demand, indicating a situation of excess supply.
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