27
practice examMultiple Choice

Practice Exam

Question 27 • Economics

A possible result of disequilibrium is

Answer
A
fixed prices.
B
excess demand.
C
stable availability.
D
lower demand.

Explanation

Disequilibrium occurs when the quantity buyers want and the quantity sellers offer are not equal at the current price. If buyers want more than sellers provide, the result is excess demand, also called a shortage. Therefore, “excess demand” is a possible result of disequilibrium; fixed prices and stable availability do not describe that imbalance.

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