In a free-market system,a disequilibrium in one market
A)provides evidence that the market system does not work.
B)shows that government intervention is always necessary to restore the market to equilibrium.
C)suggests that no seller or buyer has an incentive to alter his or her behaviour.
D)produces forces that eventually bring that market back to equilibrium.
E)means that the economy will fall into chaos.

Question

Quizplus · Accepted Answer

In a free-market system, market forces will eventually bring the market back to equilibrium. This is because a disequilibrium implies that there is either excess demand or excess supply, which indicates that buyers or sellers will have an incentive to adjust their behavior accordingly to reach a new equilibrium point. Therefore, the correct option is D.

In a Free-Market System,a Disequilibrium in One Market