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Suppose the Price in a Market Does NOT Adjust to Market

question 13

Multiple Choice

Suppose the price in a market does NOT adjust to market equilibrium.This is likely a result of i.a price floor or ceiling.
Ii) sticky prices.
Iii) selling illegal goods.


Definitions:

Consumer Surplus

The variation between the sum consumers are willing to allocate for a good or service and the sum they actually allocate.

Surplus II

An additional amount of a resource, product, or service that exceeds the amount demanded or utilized.

Consumer Surplus

The discrepancy between what consumers are willing to spend on a good or service and their actual expenditures.

Surplus II

An excess of supply over demand in the market, leading to excess goods and potential lower prices.

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