Question

which explains the connection between the law of demand and excess demand? the law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand the law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand the law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand the law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand

Explanation:

The law of demand states that, ceteris paribus, as the price of a good or service decreases, the quantity demanded increases. Excess demand occurs when quantity demanded is greater than quantity supplied at a given price. When price decreases according to the law of demand, quantity demanded rises and if supply is limited in the short - run, it can lead to excess demand.

Answer:

The law states that decreases in price leads to greater quantity demanded and limited supply, which occurs during excess demand.