Which explains the connection between the law of demand and excess demand?
1. the law states that price decreases lead to greater demand and limited supply, which occur during excess demand.
2. the law states that price increases lead to greater demand and limited supply, which occur during excess demand.
3. the law states that price decreases lead to greater supply and equilibrium, which occurs during excess demand.
4. the law states that price increases lead to greater supply and equilibrium, which occurs during excess demand.