12
QuizMultiple Choice

Determining Market Price — Quiz

Question 12 • Economics

A car dealer who does not have enough customers for a supply of new cars faces

Answer
A
disequilibrium.
B
coordination.
C
excess demand.
D
equilibrium.

Explanation

If the dealer has more new cars available than customers who want to buy them, the quantity supplied exceeds the quantity demanded. This is a surplus, or excess supply, which means the market is not in equilibrium. Therefore, the dealer faces disequilibrium.

AI-written and checked against the verified answer.

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