The Figure Given Below Shows the Demand and Supply Curves

question 82

Multiple Choice

The figure given below shows the demand and supply curves in the market for coffee. S₁ and D₁ are the original demand and supply curves.Figure 3.5
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-When a freely functioning market is in disequilibrium:

• A)the government must set a price ceiling.
• B)the government must set a price floor.
• C)the price and quantities demanded and/or supplied change until equilibrium is established.
• D)it will continue to remain in disequilibrium.
• E)it will reach equilibrium at a very high/low price.

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