Question

Equilibrum vs disequilibrium is economic models. What does it mean? how do they differ in each model?

Answer 1

Equilibrium is defined as the physical science being the state of balance in between the opposite forces are applied action without any modification in the area of economic theory. Disequilibrium is simply the absence of a balancing state it is a state where the opposite forces reduce the imbalances.the state of the balance which defines the equilibrium would better be expressed as a state where there is no change with time. Economic equilibrium is motionless where no action really takes place. In our condition market is balance but market is no motionless because sellers bring more commodities continuously to the market whereas buyers purchase it.hence in other words when the market stays in equilibrium state the magnitude of the price and the quantity variables do not change.with time these two changes even for those markets for continuously stays in disequilibrium the equilibrium concept becomes a very valuable analytical tool. The disequilibrium unemployment is usually cost records of rise in the supply of labour.where is equilibrium unemployment is the difference in between those who are willing to work and are also able to accept a job offer at the prevailing wage rate.