A market is said to be in disequilibrium if

Question

Quizplus · Accepted Answer

Disequilibrium occurs when there is either a surplus or a shortage of a good or service, meaning that the quantity demanded does not equal the quantity supplied. This can be caused by various factors such as changes in consumer preferences, prices, or government interventions in the market. Option B is not necessarily true, as affordability is just one factor that affects demand. Option C is irrelevant, as the type of good does not determine whether a market is in equilibrium or not. Option D is incorrect, as a market can be in disequilibrium regardless of whether there is a shortage or a surplus.

A Market Is Said to Be in Disequilibrium If