Question

Market disequilibrium arises, when at a price?
(A) demand exceeds supply
(B) supply exceeds demand
(C) either (a) or (b)
(D) demand equal supply

Answer 1

Both a and B option or correct because if the demand exceeds exceeds the supply also exceeds and if supply exceeds the demand will also exceed

Answer 2

In this case,the answer would be option (C) or either (A) or (B).

Explanation:

• In Microeconomics,market equilibrium is broadly characterized as a market outcome in which the overall or total consumer or buyer demand for any good or services is equal to its overall or total supply level by the sellers or producers.
• Any deviation from the above mentioned criteria leads to market disequilibrium.
• Hence,market disequilibrium usually occurs when the total or overall consumer or buyer demand for any product or services is not equal to its total or overall supply level in the market.This situation can be identified as total demand exceeding total supply level or total supply level exceeding the total market demand in any commercial market.