Question

Identify Central Ideas What two conditions can lead to disequilibrium in a free market?

Answer 1

Answer:

The shortage of supply or the shortage of demands.

Explanation:

Disequilibrium in a free market is the state which the quantity of supply offered are not equal to the quantity of goods and service's demanded by consumers.

Market disequilibrium can either happen in the supply side or in the demand side. In a condition where the quantity supplied is higher than the demand there is a situation of surplus, and in the opposite condition where the demand is higher than the supply offered there is a situation of shortage.