In a free- market system, a disequilibrium in one market

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In a free-market system, prices and quantities constantly adjust in response to changes in supply and demand. If a market is in disequilibrium (i.e. there is excess supply or demand), then there are forces at play that will eventually cause the market to move towards equilibrium. For example, if there is excess supply of a good, then prices will likely fall, which in turn will encourage more buyers and discourage sellers, ultimately leading to a reduction in supply and an increase in demand until equilibrium is reached. Similarly, if there is excess demand for a good, then prices will likely rise, which will encourage more sellers and discourage buyers, ultimately leading to an increase in supply and a decrease in demand until equilibrium is reached.

In a Free- Market System, a Disequilibrium in One Market