Are markets always in equilibrium?
A)Yes, they are always at the equilibrium point, or very close to it.
B)Yes, because few things tend to alter supply and demand.
C)No, but if there is no interference, they tend to move toward equilibrium.
D)No, they never "settle down" into a stable price and quantity.
E)Uncertain, economic theory has no answer to this question.

Question

Quizplus · Accepted Answer

Markets are not always in equilibrium, but if there isn't any interference, they tend to move towards it. There are many factors that can shift supply and demand curves, such as changes in technology, consumer preferences, and government policies. However, the market forces of supply and demand will work to adjust the price and quantity towards equilibrium in the absence of interference.

Are Markets Always in Equilibrium