Disequilibrium in a market occurs when:

• A. there are no shortages or surpluses in the market
• B. all buyers and sellers are satisfied with the current price
• C. quantity demanded does not equal quantity supplied
• D. the market price is at the equilibrium price

Answer: (C)

Verified step by step guidance

1. Understand the concept of market equilibrium: it occurs when the quantity demanded by buyers equals the quantity supplied by sellers at a certain price.
2. Recognize that disequilibrium happens when this balance is disrupted, meaning the quantity demanded is not equal to the quantity supplied.
3. Identify that if quantity demanded exceeds quantity supplied, a shortage occurs, and if quantity supplied exceeds quantity demanded, a surplus occurs.
4. Note that when there is no shortage or surplus, and all buyers and sellers are satisfied, the market is in equilibrium, not disequilibrium.
5. Therefore, the defining characteristic of disequilibrium is that the quantity demanded does not equal the quantity supplied, causing either shortages or surpluses.