If prices are slow to adjust, then it is possible that:
A) some markets will not be in equilibrium.
B) there will be a demand surplus.
C) there will be a supply shortage.
D) all of the above are true.

Question

Quizplus · Accepted Answer

If prices are slow to adjust, it means that the equilibrium price has not been reached yet, and some markets may be in shortage or surplus. This leads to option A. Additionally, if there is a demand surplus, it also means that prices may increase, leading to a supply shortage. Therefore, all three options are possible.

If Prices Are Slow to Adjust, Then It Is Possible