--%>

What is Equilibrium

What do you mean by the term Equilibrium? Also state its proper definition.

E

Expert

Verified

Equilibrium:

A) It is the point where supply and demand curves intersect is termed as the market’s equilibrium.

B) Definition of equilibrium: It is a condition in which the price has reached the level where quantity supplied equivalents quantity demanded.

   Related Questions in Macroeconomics

  • Q : Surplus of AD over AS-Inflationary gap

    Does a surplus of AD over AS always entail a condition of inflationary gap? Answer: No. Inflationary gap takes place only if AD > AS equivalent to full employmen

  • Q : Monetary policy-how is it decided The

    The practice explores how monetary policy influences the economy and the type of factors which are significant in finding out the Monetary Policy Committee’s decision.

  • Q : Problem on production function Consider

    Consider a model economy with a production function Y = K0.2(EL)0.8, where K is capital stock, L is labor input, and Y is output. The savings rate (s), which is defined as

  • Q : Another name of macroeconomics What is

    What is another name of macroeconomics? Answer: Income theory

  • Q : Principles of macroeconomics Explain

    Explain the concept of “economies of scale” and “increasing returns”.

  • Q : How central bank reduce the

    Describe any two measures by which a Central Bank can attempt to decrease the gap. Answer: Central bank can decrease this gap by adopting two measures illustrated b

  • Q : Tax when consumer pay high price When a

    When a tax on goat cheese is completely paid by consumers via higher prices, then the tax has been: (i) alleviated. (ii) Forward shifted. (iii) Backward shifted. (iv) Actualized. (v) Randomized. Can someone help me in getting throu

  • Q : Balance of trade IN which situation,

    IN which situation, there is a deficit in the balance of trade.

  • Q : Domestic Investment & Economies

    Question: How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, investment in both economi

  • Q : Demand-pull inflation What is

    What is "demand-pull" inflation?