When disequilibrium between supply and demand has tendencies to be restored to another equilibrium point over a definite path of a time frame, the equilibrium is regarded as ____________
A. dynamic and convergence equilibrium B. static and convergence equilibrium C. state and divergence equilibrium D. dynamic and divergence equilibrium
Correct Answer: A
Explanation
When a disequilibrium has the tendency of getting back to equilibrium, it is said to converge. When there is a concern about the time path followed by the equilibrium. it is a dynamic equilibrium.
