When a market is not in equilibrium,
A) government intervention is required to achieve equilibrium.
B) consumers will organize into special interest groups to promote their agenda.
C) firms will increase contributions to political action committees.
D) the economic motives of sellers and buyers will move the market to its equilibrium.
E) it will simply stay in a state of disequilibrium.

Question

Quizplus · Accepted Answer

In a market that is not in equilibrium, the economic motives of sellers and buyers will eventually move the market towards its equilibrium. As prices adjust, either buyers will increase their bids or sellers will lower their offers until the market clears and reaches equilibrium. Government intervention, special interest groups, and political action committees may affect the market, but ultimately it is the economic forces of supply and demand that determine the equilibrium.

When a Market Is Not in Equilibrium