Mastering Market Equilibrium

Economic equilibrium is a situation in which economic forces such as supply and demand are balanced and the values of economic variables do not change in the absence of external influences.

In a perfect competition market, equilibrium occurs when the quantity demanded and quantity supplied are equal.

Market equilibrium is a condition where the market price is established through competition, such that the quantity of goods or services sought by buyers is equal to the quantity of goods or services produced by sellers.

<p>The competitive price, also known as the market clearing price, is the price at which market equilibrium is established and tends not to change unless there are changes in demand or supply.</p> Signup and view all the answers

<p>No, the concept of equilibrium in economics also applies to imperfectly competitive markets, where it takes the form of a Nash equilibrium.</p> Signup and view all the answers