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

Question

Quizplus · Accepted Answer

An excess supply in the market indicates that the quantity supplied of gold is higher than the quantity demanded at the given price set by the government. Therefore, the market is in a state of disequilibrium, as there are willing sellers, but not enough willing buyers. The price set by the government may need to be adjusted for the market to reach equilibrium.

Suppose the Government Sets a Particular Price in the Market