Which of the following is NOT a characteristic of a market in equilibrium?
A) Quantity demanded equals quantity supplied.
B) Excess supply is zero.
C) All consumers are able to purchase as much as they wish.
D) Excess demand is zero.
E) The equilibrium price is stable,i.e. ,there is no pressure for it to change.

Question

Quizplus · Accepted Answer

In a market in equilibrium, quantity demanded equals quantity supplied which means there is no excess demand or excess supply. The equilibrium price is stable and there is no pressure for it to change. However, it does not guarantee that all consumers are able to purchase as much as they wish. This depends on individual incomes and the availability of the good/service. Therefore, choice C is not a characteristic of a market in equilibrium.

Which of the Following Is NOT a Characteristic of a Market