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Under which condition will both consumers and sellers benifit ? when demand exceeds supply when supply ecseeds demand or when supply equals damand

Mindee Nelson

in Business

1 answer

1 answer

Karen Wright on August 19, 2018

I would say that when the supply of equalsdemand. Because if the demand exceeds the offer, the consumer does not benefit, and if the supply exceeds the demand, which is called a surplus which normally causes the prices to go down, so that do not benefit the sellers. But, when the supply is equal to demand reach a balance. At this point, the allocation of goods is most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded.

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