Example of state of disequilibrium

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Example of state of disequilibrium 

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State of disequilibrium refers to the situation when the market demand is not equal to the market supply. This is because equilibrium is achieved when the market demand is equal to the market supply. State of disequilibrium leads to the two situations in the market:

  • Shortage: When the market demand is greater than market supply.
  • Surplus: When the market supply is greater than market demand.
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