What happens when an market is in disequilibrium and prices are flexible?

When a market is in disequilibrium with flexible prices, excess supply or demand will lead to adjustments in prices. If there is excess supply, prices will typically decrease, encouraging consumers to buy more and producers to produce less, moving the market towards equilibrium. Conversely, if there is excess demand, prices will rise, incentivizing producers to increase supply and consumers to reduce demand, again pushing the market back to equilibrium. This dynamic adjustment process continues until the market reaches a balance where supply equals demand.