Question

Distinguish between the excess demand and excess supply.

Answer 1

Sr. No.	Excess demand	Excess supply
1.	The amount by which quantity demanded exceeds the quantity supplied is called ‘excess demand’.	The amount by which the quantity supplied exceeds the quantity demanded is called ’excess supply’.
2.	In case of excess demand, consumers will not be able to buy all they wish to buy.	In case of excess supply, producers would not be able to sell.