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What is market Disequilibrium ?

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What is market Disequilibrium ?

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Market disequilibrium simply means that demand and supply curve is not crossing.This can means supply is less than demand or vice versa. In a market where supply is less than demand the price of goods and services eventually will go up until demand is less and the market is in equilibrium.In a market where there is an oversupply of goods and services the price eventually will go down until demand curve cross the supply curve.The point where the supply curve is crossing the demand curve is known as optimum price and the market is in equilibrium.

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