5 Questions
What is economic 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.
Give an example of economic equilibrium in a perfect competition market.
In a perfect competition market, equilibrium occurs when the quantity demanded and quantity supplied are equal.
What is market equilibrium?
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.
What is the competitive price in market equilibrium?
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.
Does the concept of equilibrium in economics only apply to perfect competition markets?
No, the concept of equilibrium in economics also applies to imperfectly competitive markets, where it takes the form of a Nash equilibrium.
Test your knowledge of market equilibrium in economics with this quiz! Explore the concept of economic equilibrium and learn about the key factors that contribute to a balanced market. Challenge yourself to understand how supply and demand interact to determine the equilibrium price and quantity in different market structures.
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