ECONOMICS
MARKETS AND PRICES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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when quantity supplied and quantity demanded are not the same
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a sudden lack of goods
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smallest amount that can be paid to a worker
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when quantity supplied and quantity demanded are equal
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Detailed explanation-1: -in a market setting, disequilibrium occurs when quantity supplied is not equal to the quantity demanded; when a market is experiencing a disequilibrium, there will be either a shortage or a surplus.
Detailed explanation-2: -Economists call this an “excess demand” – the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.
Detailed explanation-3: -What Is Disequilibrium? Disequilibrium is a situation where internal and/or external forces prevent market equilibrium from being reached or cause the market to fall out of balance. This can be a short-term byproduct of a change in variable factors or a result of long-term structural imbalances.
Detailed explanation-4: -Excess supply is one of the two types of disequilibrium in a perfectly competitive market, excess demand being the other. When quantity supplied is greater than quantity demanded, the equilibrium level does not obtain and instead the market is in disequilibrium.
Detailed explanation-5: -At equilibrium, the quantity demanded is equal to the quantity supplied, meaning the demand is equal to supply at equilibrium. In the instance there is a shortage of a product, the quantity demanded will surpass the quantity supplied, and thus demand will be in excess.