Answer:
Price of the good will increase(rise)
Explanation:
Demand can be defined as the amount of goods a consumer is willing to buy at a particular time.
The law of demand states that "the higher the price; the lower the demand, the lower the price; the higher the demand". This is to say that consumer buys more at lower prices and buy less at higher prices.
Supply is the amount of goods a producer is willing to sell at a particular period of time.
The law of supply states that " the higher the price, the higher the supply; the lower the price, the lower the supply. This is to ensure that producers make more Profits at higher prices.
Equilibrium point is a point where demand equals supply.
D=S
Excess supply is when supply exceeds the demand of a commodity. When supply exceeds demand, price of the Commodity will fall.
Excess demand is when demand of a commodity exceeds it's supply. When demand exceeds supply, price of the Commodity will increase. This is because more people are willing to buy less quantity of a product, so, sellers tend to increase the price in order to make more profit.
