Can you please explain what equilibrium and disequilibrium are in economic terms?

Question

in easy language if possible...thank you

Answer 1

Equilibrium is the point at which everyone in the market that is willing to pay a certain price is able to obtain something.

Disequilibrium is when this condition is not met.

In other words, when every unit produced and sold at a certain price has someone willing to pay that price, and there is no one who is unable to obtain the number of units that they want, the market is in equilibrium. In graphic terms, it is where supply and demand cross.

Hope this clarifies it some.