Suppose the government imposes an administered price in the market for gold,which results in an excess supply.In this situation,
A)the market is in disequilibrium.
B)no gold will be exchanged.
C)there are unsuccessful buyers.
D)the market is in equilibrium.
E)the gold market has not reached the point of saturation.

Question

Quizplus · Accepted Answer

An excess supply in the market indicates that the quantity supplied is greater than the quantity demanded, leading to a surplus. Since the government imposed an administered price, the market is not able to clear, and the market is in disequilibrium.

Suppose the Government Imposes an Administered Price in the Market