Any point on the demand curve below the equilibrium point shows _____.

equilibrium

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excess demand

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excess supply

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none of the above

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Solution

The correct option is A excess demand
Excess demand is a situation where the quantity demanded of a good or service is more than the quantity supplied and its price is less than the equilibrium price determined by demand and supply. Hence, any point on the demand curve below the equilibrium point shows excess demand.

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