Terms Beginning With 'd'

Disequilibrium

  • January 15, 2020
  • Team Kalkine

A situation where the economic forces like demand and supply are unbalanced due to internal and/or external forces, is termed as disequilibrium. It can occur as a result of long-run structural imbalances or can be a short-run byproduct of a shift in variable factors.

In financial markets, either the disequilibrium never occurs or momentarily occurs, as the trading is a continuous process and prices of financial assets hold the ability to adjust instantly with each trade to equilibrate demand and supply.

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