Asked by Kennedy Ellison on May 19, 2024

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A mismatch between quantity demanded and quantity supplied will always force a price change.

Mismatch

A situation where there is a discrepancy or lack of alignment between two or more factors, often leading to inefficiency.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a market.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a certain period of time.

  • Understand the circumstances leading to market instability and the ways in which markets adapt to alterations.
  • Familiarize yourself with the foundational theories of supply and demand, especially how curves shift due to external contingencies.
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Halima GravesMay 20, 2024
Final Answer :
True
Explanation :
When there is a mismatch between quantity demanded and quantity supplied, either a shortage or a surplus occurs. If there is a shortage, meaning the quantity demanded exceeds the quantity supplied, then producers will increase the price to meet the excess demand. If there is a surplus, meaning the quantity supplied exceeds the quantity demanded, then producers will decrease the price to stimulate demand and sell off their excess supply. Therefore, a price change is necessary to restore equilibrium between quantity demanded and quantity supplied.