Answer to Question #328089 in Economics for Xzhely

Question

Market Equilibrium: Mathematical Approach

Price (In Thousand)

Answer 1

The equilibrium in a market occurs where the quantity supplied in that market is equal to the quantity demanded in that market.

Economic equilibrium is a condition or state in which economic forces are balanced. In effect, economic variables remain unchanged from their equilibrium values in the absence of external influences. Economic equilibrium is also referred to as market equilibrium.