Which of the following is a possible result of disequilibrium in a market?

• A. Perfect allocation of resources
• B. Market price equals equilibrium price
• C. A surplus or shortage of goods
• D. All buyers and sellers are satisfied

Answer: (C)

Verified step by step guidance

1. Understand the concept of market equilibrium: it occurs when the quantity demanded equals the quantity supplied at the market price, leading to no excess supply or demand.
2. Recognize that disequilibrium happens when the market price is either above or below the equilibrium price, causing imbalances.
3. If the price is above equilibrium, suppliers want to sell more than buyers want to buy, resulting in a surplus of goods.
4. If the price is below equilibrium, buyers want to purchase more than suppliers are willing to sell, leading to a shortage of goods.
5. Therefore, a possible result of disequilibrium in a market is either a surplus or a shortage of goods, not perfect allocation or all buyers and sellers being satisfied.