Disequilibrium Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.

Disequilibrium

Suppose the market for cars is unregulated. That is, car prices are free to adjust based on the forces of supply and demand.

If a shortage exists in the car market, then the current price must be(higher or lower)than the equilibrium price. For the market to reach equilibrium, you would expect ( persistent excess demand, sellers to offer lower price or buyer to offer higher price).