Asked by Deangelo Johnson on Apr 24, 2024

Disequilibrium occurs due to the absence of government intervention in certain markets.

Disequilibrium

The condition that exists in a market when the plans of buyers do not match those of sellers; a temporary mismatch between quantity supplied and quantity demanded as the market seeks equilibrium

Government Intervention

Actions taken by a government to influence or regulate various activities in its economy, which can include fiscal policy, monetary policy, tariffs, and regulation.

  • Recognize the conditions that lead to market disequilibrium and how markets adjust to changes.