Disequilibrium

Disequilibrium,

Disequilibrium Meanings:

  • 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

  1. Loss or imbalance or lack of stability, especially in terms of supply, demand and prices.