Question

Which is not true of market equilibrium? A All sellers who want to sell at the...

Which is not true of market equilibrium?

A

All sellers who want to sell at the equilibrium price can find a buyer to sell to.

B

It is the most desirable outcome that a social order could have.

C

All buyers who want to buy at the equilibrium price can find a seller to buy from.

D

Circumstances can change from day to day which make any equilibrium very tentative.

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Answer #1

Answer is option B)

At market eqm,

Q Demanded = Q supplied

So A) & C) are true

Sellers find buyers to sell & buyers find sellers to buy from

Market eqm is not the socially desirable outcome when externalities exist in market .

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