Which explains the connection between the law of demand and excess demand?

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

b) the law states that increases in price increases leads to greater quantity demanded and limited supply, which occurs during excess demand.

c) the law states that decreases in price leads to greater supply and equilibrium, which occurs during excess demand.

d) the law states that increases in price leads to greater supply and equilibrium, which occurs during excess demand.

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

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A) The connection between the law of demand and excess demand is explained by - The law states that price decreases leads to higher quantity demanded and limits supply, which occurs when the demand becomes excess.

When there is a decrease in the price of a certain commodity, more people gain the ability to purchase the commodity that was earlier unaffordable for them. This, in a short span of time, leads to excess demand in the market.

The supply law and the demand law relates the sellers and the buyers of resources. These are curves which change according to the availability of the product and desire of the product in the market.  

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