ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -in a market setting, disequilibrium occurs when quantity supplied is not equal to the quantity demanded; when a market is experiencing a disequilibrium, there will be either a shortage or a surplus.

Detailed explanation-2: -Economists call this an “excess demand” – the quantity demanded is greater than the quantity supplied at the given price. This is also called a shortage.

Detailed explanation-3: -The equilibrium price is the only price where the plans of consumers and the plans of producers agree-that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity.

Detailed explanation-4: -Disequilibrium is a situation where internal and/or external forces prevent market equilibrium from being reached or cause the market to fall out of balance. This can be a short-term byproduct of a change in variable factors or a result of long-term structural imbalances.

Detailed explanation-5: -Disequilibrium occurs when a market destabilizes such that quantity demanded does not equal quantity supplied, thus creating either a shortage or a surplus. Shortages occur when quantity demanded is greater than quantity supplied at the market price.