If a market is NOT in equilibrium, then which of the following is likely to occur?

Question

Quizplus · Accepted Answer

If a market is not in equilibrium, the price will generally adjust to bring the market to equilibrium. This is due to the laws of supply and demand, where excess supply will push down prices and excess demand will push up prices until a new equilibrium is reached. While supply and demand curves may shift to cause the initial imbalance, the price adjustment is the primary factor that corrects the market. Therefore, choice A is the best answer. Choice B is only partially correct, as the supply curve shifting may contribute to the initial imbalance, but it is not the primary factor that corrects the market. Choice C is also only partially correct, as the demand curve shifting may contribute to the initial imbalance, but it is not the primary factor that corrects the market. Choice D is incorrect, as only choice A is fully correct.

If a Market Is NOT in Equilibrium, Then Which