Imbalance is a situation in which internal and / or external forces prevent or cause market imbalances. This variable can be the result of a short-term by-product of variable factors or a long-term structural imbalance.
- Imbalance arises when external forces upset the balance between supply and demand in the market. In response, the market enters a situation where supply and demand do not match.
- The imbalance can be attributed to a number of reasons, from government intervention to incompetence in the labor market and unilateral measures by suppliers or sellers.
- Imbalances are usually corrected when entering the market in new equilibrium conditions.
Meanings of Disequilibrium
Loss or imbalance or lack of stability, especially in terms of supply, demand and prices.