The difference between equilibrium and disequilibrium
Equilibrium is the market state where quantity demanded equals quantity supplied. Disequilibrium is any situation where those two quantities do not match.
Real World
When PlayStation 5 launched in 2020, supply was far below demand at the retail price, creating a persistent shortage — a classic disequilibrium — until production scaled up and scalper prices eventually fell.
Exam Focus
Always identify whether disequilibrium is a surplus or shortage and state the price adjustment mechanism that restores equilibrium.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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