Which of the following would indicate a market with excess demand?

The presence of excess demand in a market occurs when the quantity of goods or services demanded exceeds the quantity supplied at a given price level. In this scenario, low prices alongside high consumer spending signals that consumers are eager to purchase goods, likely because they perceive them as a good value. This high demand relative to supply indicates that there are not enough products available to satisfy consumer needs at those price levels, thus leading to excess demand.

In contrast, high prices with low consumer interest suggests that demand is weak, as consumers are not willing to buy at the higher price point, which does not align with the concept of excess demand. Stable prices and high production levels suggest that supply adequately meets demand, indicating market equilibrium rather than excess demand. Lastly, low supply and increased producer costs can signal potential supply issues, but without the corresponding consumer appetite, it doesn’t necessarily indicate excess demand on its own. Thus, the dynamics of low prices with high consumer spending effectively illustrate a market characterized by excess demand.