Explain what happens when prices are set above equilibrium. What conditions exist in disequilibrium and how does the market adjust back to equilibrium? Draw a graph to illustrate and include relevant labels.

Explain what happens when prices are set above equilibrium. What conditions exist in disequilibrium and how does the market adjust back to equilibrium? Draw a graph to illustrate and include relevant labels.

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

ChapterST5: The Great Recession Of 2008-2009: Causes And Response

Section: Chapter Questions

Problem 4CQ

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