If a market is in disequilibrium:
A)it will continue unless there is government intervention.
B)no individual will be better off doing something different.
C)there are opportunities for people to make themselves better off.
D)it must be because the government has intervened in the market, resulting in the market's failure to reach equilibrium.

Question

Quizplus · Accepted Answer

In a market in disequilibrium, there are opportunities for people to make themselves better off. This is because the market is not in balance and there are potential gains from trade. For example, if there is excess supply in the market, buyers may be able to negotiate lower prices, while sellers may be willing to lower their prices to get rid of excess inventory. In this way, individuals can potentially make themselves better off by taking advantage of the market disequilibrium. It is not necessarily true that government intervention is needed or that no individual will be better off doing something different.

If a Market Is in Disequilibrium