When a Market Is Not in Equilibrium

question 82

Multiple Choice

When a market is not in equilibrium,

• A) government intervention is required to achieve equilibrium.
• B) consumers will organize into special interest groups to promote their agenda.
• C) firms will increase contributions to political action committees.
• D) the economic motives of sellers and buyers will move the market to its equilibrium.
• E) it will simply stay in a state of disequilibrium.

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Definitions:

Future Interest

A legal right to property or an estate that becomes possessible or enjoyable at a future date.

Third Party

An entity not directly involved in a contract or agreement but who may be affected by its outcomes or can affect its execution.

Remainder

The part of an estate that is left after all other bequests and debts have been satisfied.

Fee Simple

The most comprehensive ownership interest in real property, allowing the owner nearly unlimited control over the land.