Price determination

• Disequilibrium- prices where demand and supply are out of balance are points of disequillibrium. There is either excess demand or excess supply
• equillibrium means at rest- a situation where there is no tendency for change
• Excess demand is a situation where quantity demanded is greater than quantity supplied
• excess supply is a situation where quantity supplied is greater than quantity demanded
• health rationing occurs when the demand for health care services outstrips the available resources leading to waiting lists and delays for health treatment
• Shortage is a situation in which quantity demanded is greater than quantity supplied