Arrange the following steps of Market Equilibrium under perfect competition in the correct order.

(A) Excess of market demand over market supply will cause excess demand situation.
(B) Quantity demanded will fall and quantity supplied will rise.
(C) The market will move towards the point where the quantity that the firm wants to sell is equal to the quantity that the consumer wants to buy.
(D) The market price would tend to increase, due to competition among buyers.

Choose the correct answer from the options given below:

(A), (D), (B), (C)

The correct answer is Option (3) → (A), (D), (B), (C)

• (A) Excess of market demand over market supply will cause excess demand situation. This is the starting point: demand is greater than supply, creating excess demand.

• (D) The market price would tend to increase, due to competition among buyers. When demand exceeds supply, buyers compete, pushing the price up.

• (B) Quantity demanded will fall and quantity supplied will rise. As price increases, consumers demand less, and producers are willing to supply more.

• (C) The market will move towards the point where the quantity that the firm wants to sell is equal to the quantity that the consumer wants to buy. This is the point of market equilibrium, where demand equals supply.