Question

Which statement is NOT true when a market is in equilibrium? A) Every consumer willing and able to pay for a good is able to do so. B) There is no surplus or shortage. C) The market has cleared. D) Sellers have enough inventory to satisfy all buyers and some left over for future demand.

Answer 1

When a market is in equilibrium, the statement that is not true is "Sellers have enough inventory to satisfy all buyers and some left over for future demand".

In a market equilibrium, the quantity demanded is equal to the quantity supplied. This means that both demanders and suppliers are satisfied. The equilibrium price is often called the market clearing price.

The statements that are true when a market is in equilibrium are:

Every consumer willing and able to pay for a good is able to do so.

There is no surplus or shortage.

The market has cleared.