D Question 11 A market is said to be in disequilibrium if it exhibits either a surplus or a shortage. O the number of units that individuals are willing to buy exceeds the number of units they can afford. it is a market for an inferior good. none of the above
A market is said to be in disequilibrium if it exhibits either a surplus or a shortage.
A surplus occurs when the quantity supplied of a good exceeds the quantity demanded. A shortage occurs when the quantity demanded of a good exceeds the quantity supplied.
Option (b) is incorrect because the number of units that individuals are willing to buy cannot exceed the number of units they can afford. The number of units that individuals can afford is determined by their income, and the number of units that they are willing to buy is determined by their preferences.
Option (c) is incorrect because a market for an inferior good can still be in equilibrium. An inferior good is a good whose demand decreases as income increases. However, the demand for an inferior good can still be equal to the supply at a certain price.
Therefore, the only option that is left is (a). A market is said to be in disequilibrium if it exhibits either a surplus or a shortage.
Step by step
Solved in 3 steps
