When a market is in disequilibrium consumers and producers change ...

[mynx]

When a market is in disequilibrium consumers and producers change their behavior. As a result the market reaches equilibrium.
 
  Indicate whether the statement is true or false

Question 2

Buying a diversified mutual stock fund allows you to
 
  A) completely avoid all types of risk.
  B) avoid only random, unsystematic risk.
  C) avoid only systematic risk.
  D) avoid risk only when all the stock prices are perfectly correlated.

[Animal_Goddess]

Answer to Question 1

True . For example, when a shortage exists at a given price, consumers bid up the price and firms increase production until the equilibrium is reached.

Answer to Question 2

B