DISEQUILIBIUM

OCCURS WHEN THERE IS EXCESS DEMAND, WHICH CAUSES A SHORTAGE, OR WHEN THERE IS EXCESS SUPPLY, WHICH CAUSES A SURPLUS (WHEN QUANTITY SUPPLIED AND QUANTITY DEMANDED AREN'T EQUAL)

EXAMPLE: A TECH COMPANY STARTS PRODUCING A NEW TABLET, BUT THEY DON'T SELL AS WELL AS EXPECTED. THE COMPANY ENDS UP WITH A SURPLUS OF TABLETS BECAUSE NOT ENOUGH PEOPLE BUY THEM, MAKING THE QUANTITY SUPPLIED MORE THAN THE QUANTITY DEMANDED.

TO AVOID DISEQUILIBRIUM, THE QUANTITY DEMANDED AND THE QUANTITY SUPPLIED MUST BE EQUAL.

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