Suppose the price in a market does NOT adjust to market equilibrium.This is likely a result of i.a price floor or ceiling.
Ii)sticky prices.
Iii)selling illegal goods.

Question

Quizplus · Accepted Answer

Option i, price floor or ceiling, would prevent the market from reaching equilibrium by setting a minimum or maximum price above or below the equilibrium price. Option iii, selling illegal goods, is not relevant as it does not affect the market's ability to reach equilibrium. Option ii, sticky prices, is the most likely reason why the price in a market may not adjust to the equilibrium price, as producers may be reluctant to change their prices in response to changes in demand and supply.

Suppose the Price in a Market Does NOT Adjust to Market