A loss or lack of equilibrium or stability, especially in relation to supply, demand, and prices.
- In contrast to equilibrium theories, disequilibrium theories suggest that income differences among regions are likely to persist and even widen over time.
- In both economies and markets, instability and disequilibrium are normal; stability and equilibrium are not.
- If you pick up any elementary text, if the market is in disequilibrium, the reflex reaction is that when demand is in excess, prices will rise and that will eliminate the excess demand.
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