When a market is not in equilibrium:
A)total surplus can be increased by a change in market price.
B)the market is not efficient.
C)there are exchanges that can make some better off without someone becoming worse off.
D)All of these are true.

Question

Quizplus · Accepted Answer

When a market is not in equilibrium, any change in the market price can lead to an increase in total surplus. The market is not efficient because there is excess demand or supply, which leads to some individuals not being able to participate in the market. However, there may still be exchanges that could make some better off without others becoming worse off, for example, a seller offering a discount to attract buyers. Therefore, all of the given options are true when a market is not in equilibrium.

When a Market Is Not in Equilibrium