If at some administered price there is excess demand,
A) the market is in its free- market equilibrium.
B) none of the product will be exchanged.
C) the market is in disequilibrium.
D) there are unsuccessful sellers.
E) the product has not reached the point of saturation.

Question

Quizplus · Accepted Answer

Excess demand means that there are more buyers than the quantity of the product available at the given price. This situation indicates that the market is in disequilibrium, where the quantity demanded is greater than the quantity supplied, and there is a shortage. In equilibrium, the quantity demanded is equal to the quantity supplied, and there is no excess demand or supply.

If at Some Administered Price There Is Excess Demand