A market in disequilibrium would feature
A) a stable price.
B) consumers able to purchase all they wish at the market price.
C) a stable quantity.
D) either excess supply or excess demand.
E) firms able to sell all they wish at the market price.

Question

Quizplus · Accepted Answer

A market in disequilibrium is by definition one in which the quantity demanded does not equal the quantity supplied. This leads to either excess demand (when demand is greater than supply) or excess supply (when supply is greater than demand). In either case, the market cannot maintain a stable price or quantity. Therefore, option D is the correct answer. Options A, B, and E are incorrect because they all suggest stability, which is not characteristic of a market in disequilibrium.

A Market in Disequilibrium Would Feature