QuestionJune 14, 2025

Are markets always in equilibrium? Yes, they are always at the equilibrium point,or very close to it. Yes, because few things tend to alter supply and demand. No, but if there is no interference, they tend to move toward equilibrium. No, they never "settle down" into a stable price and quantity. Uncertain, economic theory has no answer to this question.

Are markets always in equilibrium? Yes, they are always at the equilibrium point,or very close to it. Yes, because few things tend to alter supply and demand. No, but if there is no interference, they tend to move toward equilibrium. No, they never "settle down" into a stable price and quantity. Uncertain, economic theory has no answer to this question.
Are markets always in equilibrium?
Yes, they are always at the equilibrium point,or very close to it.
Yes, because few things tend to alter supply and demand.
No, but if there is no interference, they tend to move toward equilibrium.
No, they never "settle down" into a stable price and quantity.
Uncertain, economic theory has no answer to this question.

Solution
4.6(288 votes)

Answer

No, but if there is no interference, they tend to move toward equilibrium. Explanation 1. Understand Market Equilibrium Market equilibrium occurs when supply equals demand, resulting in a stable price and quantity. 2. Analyze Market Dynamics Markets are influenced by various factors such as changes in consumer preferences, technology, and external shocks, which can cause shifts in supply and demand. 3. Evaluate Market Adjustment Without interference, markets tend to adjust toward equilibrium over time due to the self-correcting nature of supply and demand forces.

Explanation

1. Understand Market Equilibrium<br /> Market equilibrium occurs when supply equals demand, resulting in a stable price and quantity.<br /><br />2. Analyze Market Dynamics<br /> Markets are influenced by various factors such as changes in consumer preferences, technology, and external shocks, which can cause shifts in supply and demand.<br /><br />3. Evaluate Market Adjustment<br /> Without interference, markets tend to adjust toward equilibrium over time due to the self-correcting nature of supply and demand forces.
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