What happens when quantity demanded exceeds quantity supplied?
Graphically, the Y axis is price and the X axis is quantity. The demand curve slopes downward, while the supply curve slopes upward. When quantity demanded exceeds quantity supplied the market is out of equilibrium. As a result, the price of goods increases, thereby decreasing the quantity demanded. This is characterized as a move up along the demand curve and not a shift. Changes in endogenous variables, ie price and quantity, are just movements along the curve.
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