Excess demand example sentences

The aggregate price level in the economy changes only when adjustments in all markets of the economy fail to eliminate the excess demand or supply.This process goes on, round after round, with producers increasing their output to clear the excess demand in each round and consumers spending a part of their additional income from this extra production on consumption items – thereby creating further excess demand in the next round.At the initial equilibrium exchange rate e*, there is now an excess demand for foreign exchange.8)10 and there again emerges an excess demand equal to (0.8)210, once again creating excess demand of the same amount.