What is the difference between market equilibrium and market disequilibrium? Please include an example.
What is the difference between market equilibrium and market disequilibrium? Please include an example.
Homework Answers
Answer : Difference between equilibrium and disequilibrium of market are :
- Market equilibrium means a situation in which quantity demanded is equal to quantity supplied where as market disequilibrium exist in a situation where quantity demanded is not equal to quantity supplied.
- Price are fixed in market equilibrium where as price are higher in the market resulted in surplus in the market when price are less than it is resulted in shortage of goods in the market.
- Example : Perfect price has been charged as there is no shortage nor surplus where quantity demanded is exactly equal to quantity supplied.As in case of market disequilibrium there is a shortage or surplus in amarket area.
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