19
QuizMultiple Choice

Determining Market Price — Quiz

Question 19 • Economics

Both excess supply and excess demand are a result of

Answer
A
equilibrium.
B
disequilibrium.
C
elasticity.
D
overproduction.

Explanation

Excess supply and excess demand both occur when the market price is not at the equilibrium price. At a price above equilibrium, quantity supplied exceeds quantity demanded, creating excess supply; below equilibrium, quantity demanded exceeds quantity supplied, creating excess demand. Both are forms of disequilibrium.

AI-written and checked against the verified answer.

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