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  1. Economic Equilibrium: How It Works, Types, in the Real World

    • Economic equilibrium is a condition or state in which economic forces are balanced. When there is economic equilibrium, all economic variables like supply and demandremain unchanged provided t… See more

    Understanding Economic Equilibrium

    As noted above, economic equilibrium occurs when there's a balance in economic forces. This means that when economic equilibrium exists, all economic variables remain the … See more

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    Special Considerations

    Equilibrium is a concept borrowed from physical sciences. This was done by economists who … See more

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    Types of Economic Equilibrium

    In microeconomics, economic equilibrium may also be defined as the price at which supply equals demand for a product, in other words where the hypothetical supply and deman… See more

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    Economic Equilibrium in The Real World

    Equilibrium is a fundamentally theoretical construct that may never actually occur in an economy because the conditions underlying supply and demand are often dynamic an… See more

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  2. Equilibrium is the state in which market supply and demand balance each other, and as a result prices become stable. Generally, an over-supply of goods or services causes prices to go down, which results in higher demand—while an under-supply or shortage causes prices to go up resulting in less demand.
    www.investopedia.com/terms/e/equilibrium.asp
    In microeconomics, economic equilibrium may also be defined as the price at which supply equals demand for a product, in other words where the hypothetical supply and demand curves intersect.
    www.investopedia.com/terms/e/economic-equilibriu…
     
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