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    Supply and Demand are not in equilibrium

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    Dear OTA,

    Describe what happens to a market when Supply and Demand are not in equilibrium. List two examples when you observed the "disequilibria" of supply and demand in a market, and what caused the market to come to equilibrium, if indeed it did.

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    Solution Preview

    When Supply and Demand are not in equilibrium, excess demand or excess supply will come into place.
    <br>1. When the total demand is greater than the aggregate supply, there is an excess demand. For example, a sudden increase in government spending ...

    Solution Summary

    List two examples when you observed the "disequilibria" of supply and demand in a market, and what caused the market to come to equilibrium, if indeed it did.

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