5
practice testMultiple Choice

Practice Test

Question 5 • Personal Finance and Economics

When prices drop below the point where supply and demand meet, it results in

Answer
A
equilibrium.
B
disequilibrium.
C
production.
D
coordination.

Explanation

The point where supply and demand meet is the equilibrium price. When the price falls below that point, buyers want to purchase more than sellers are willing to supply, creating a shortage. That imbalance is called disequilibrium, so the correct choice is “disequilibrium.”

AI-written and checked against the verified answer.

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