O-LevelEconomicsThe allocation of resources2281/12 · May/June 2024 · Q71 Mark

Which statement describes a market in disequilibrium?

AExcess demand results from a government maximum price below the equilibrium price.

BThe point where the demand and supply curves cross.

CPrice changes cause further changes in both demand and supply.

DThe quantity demanded by consumers equals the quantity supplied by producers.

✓ Correct answer

A: Excess demand results from a government maximum price below the equilibrium price.

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Topic: The allocation of resources, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source: O-Level Economics, May/June 2024 Paper 1 Variant 2, question 7.

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