Question 22EconomicsJAMB
A market is in disequilibrium if
A
The quantity purchased is greater than the quantity sold
B
The quantity sold differs from the quantity purchased
C
At a lower price, a larger quantity is sold
D
The quantity demanded differs from the quantity supplied.
Step-by-Step Explanation
A market is in disequilibrium when the quantity demanded does not equal the quantity supplied, leading to either excess demand or excess supply. This imbalance causes prices to adjust as buyers and sellers respond to the differences in quantity. Such fluctuations continue until the market reaches a new equilibrium where demand equals supply.