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  • 02-08-2021
  • Business
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b) Discuss the adjustment mechanism on real and good market in the economy from disequilibrium

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rywardghimire
rywardghimire rywardghimire
  • 02-08-2021

Answer:

Disequilibrium refers to a situation in which demand does not equal supply. For example, the demand for a good might be 6, and the supply might be 10. The excess supply is 4. One possibility is that the excess supply causes the price of the good to fall, raising demand and reducing supply, and equilibrium results.

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