00:01
The concepts of supply and demand come with them also the concepts of equilibrium and disequilibrium.
00:08
So let's start first by differentiating between these two.
00:10
And to do that, i think we can graph it out to make it most obvious.
00:14
So for market equilibrium, this occurs when our supply curve and our demand curve make up the market price and quantity at which the economy, this particular market, is working at.
00:27
So we'd be an equilibrium at the point where they intersect.
00:31
And when we're in equilibrium, we are producing at the quantity down here and the price here.
00:38
So these are the quantities and prices that coincide with that intersection.
00:45
Now, when we are in disequilibrium, what we see is still a supply curve and a demand curve, and we can still clearly see where the equilibrium should be.
00:54
However, in this case, the market is operating somewhere else.
00:58
Outside of that intersection point...