Equilibrium and Disequilibrium

question 26

Multiple Choice

Equilibrium and disequilibrium

• A) are real world states.
• B) are mental constructs used by economists.
• C) foreshadow what is about to happen in a market.
• D) a and b
• E) a,b and c

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Definitions:

Government Intervention

Actions taken by a government to influence or directly regulate the economy, markets, or specific industries, often to correct market failures or promote social welfare.

Excess Demand

Occurs when the quantity demanded of a good or service at a given price exceeds the quantity supplied, often leading to a shortage in the market.

Price Of Burritos

The cost consumers pay to purchase a burrito, which can vary based on ingredients, location, and restaurant type.

Demand Shifts

Changes in the desire or need for a product or service, influenced by factors such as price, consumer preferences, and income levels.