Are markets always in equilibrium?
A. No, they never “settle down” into a stable price and quantity.
B. No, but if there is no outside interference, they tend to move toward equilibrium.
C. Yes, because very few things tend to alter supply and demand.
D. Yes, they are always at the equilibrium point, or very close to it.
Answer:B
Are markets always in equilibrium?
A. No, they never “settle down” into a stable price and quantity. B. No, but if there is no outside interference, they tend to move toward equilibrium. C. Yes, because very few things tend to alter supply and demand. D. Yes, they are always at the equilibrium point, or very close to it.
Explanation: 26. The imposition of a price ceiling on a market often results in: