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Forces of supply and demand

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Reference no: EM131531203

Disequilibrium

Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the car market, then the current price must be(higher or lower)  than the equilibrium price. For the market to reach equilibrium, you would expect ( persistent excess demand, sellers to offer lower price or buyer to offer higher price).

Reference no: EM131531203

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