Disequilibrium

Disequilibrium

• Def.
• When quantity supplied is not equal to quantity demanded

Disequilibrium occurs quantity supplied is not equal to quantity demanded

Disequilibrium can produce one of two outcomes, excess demand or excess supply

If the quantity demanded and the quantity supplied are not the same, that is immediately a disequilibrium

When many shoes are supplied by a company but only half were sold, that will cause a disequilibrium of excess supply

When a taco stand runs out of meat do to many tacos being sold, that is excess of demand causing disequilibrium