How is "Resiliency" defined in market contexts?

In market contexts, "Resiliency" refers to the ability of a market to absorb shocks and return to its equilibrium state after experiencing volatility or distress. However, the choice that pertains to this concept most accurately describes the dynamics between order flow and price movement, specifically the notion of how quickly the market can adjust when faced with significant or "lumpy" orders, which can disrupt the regular supply-demand balance.

When a large order is introduced into the market, it can lead to price dislocations due to the sudden change in buying or selling pressure. A resilient market is characterized by its ability to accommodate these lumpy orders effectively without causing excessive price fluctuations. This contrasts with more illiquid markets, where such orders can have a more pronounced impact and could lead to larger price swings.

The other answer choices do not encapsulate the essence of resiliency as closely as the understanding of how lumpy orders affect market prices. For instance, the time for markets to recover from volatility, while related to how resilient a market can be, does not specifically address the immediate impact of large orders. The amount of liquidity in the market is a component of resiliency but isn't a definitive measure of the concept itself. Finally, the ability to process an increased number of