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Dictionary entry overview: What does disequilibrium mean? â¢ DISEQUILIBRIUM (noun) The noun DISEQUILIBRIUM has 1 sense: 1. loss of equilibrium attributable to an unstable situation in which some forces outweigh others Familiarity information: DISEQUILIBRIUM used as a noun is very rare.
Disequilibrium could occur if the price was below the market equilibrium price causing demand to be greater than supply, and therefore causing a shortage. Disequilibrium can occur due to factors such as government controls and sticky prices. Disequilibrium due to price below equilibrium. With a price of P1, the demand (Q1) is greater than the supply (Q3). This disequilibrium will lead to a shortage (Q1-Q3) and long queues as consumers try to get the limited supply.