Economics · May / June 2024 · Paper 12 · Question 7
Which statement describes a market in disequilibrium?
- AExcess demand results from a government maximum price below the equilibrium price.
- BThe point where the demand and supply curves cross.
- CPrice changes cause further changes in both demand and supply.
- DThe quantity demanded by consumers equals the quantity supplied by producers.
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Correct answer: A. Excess demand results from a government maximum price below the equilibrium price.
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