In the market for apartment housing, the quantity of available apartments is observed to be less than the number of renters who are willing and able to pay the market price of an apartment. In this scenario, the market is said to be _____.(1 point)

Question

Responses

in disequilibrium because there is a surplus of apartments on the market
in disequilibrium because there is a surplus of apartments on the market

in equilibrium because there is a shortage of apartments on the market
in equilibrium because there is a shortage of apartments on the market

in equilibrium because there is a surplus of apartments on the market
in equilibrium because there is a surplus of apartments on the market

in disequilibrium because there is a shortage of apartments on the market

Answer 1

The correct response is:

in disequilibrium because there is a shortage of apartments on the market.

In this scenario, since there are more renters willing to pay than the available apartments, it indicates a shortage, leading to disequilibrium in the market.