Question

Which occurs during disequilibrium? Check all that apply.

1.Supply and demand meet.
2.Supply is less than demand.
3.Supply and demand set prices.
4.Supply is greater than demand.
5.Supply and demand set production.

Answer 1

One thing that occurs during disequilibrium is when supply is less than demand. The correct answer is 2. 

Answer 2

The market is in disequilibrium when the market price is above or below the equilibrium price, so disequilibrium occurs when the quantity of supply does not equal the quantity of demand. According to that explanation, during disequilibrium supply is less than demand (which would result in shortage) or supply is greater than demand as well (which would cause surplus). (Options 2 and 4).