Equilibrium in neoclassical economics, equilibrium exists when supply equals demand for a particular commodity. General equilibrium is a special (purely hypothetical) condition in which every market (including markets for both final products and factors of production, the latter including labour) is in equilibrium.
Webster Dictionary Meaning
1. Equilibrium- Equality of weight or force; an equipoise or a state of rest produced by the mutual counteraction of two or more forces.
- A level position; a just poise or balance in respect to an object, so that it remains firm; equipoise; as, to preserve the equilibrium of the body.
- A balancing of the mind between motives or reasons, with consequent indecision and doubt.
Share it: Cite
Previous: ← Environmental Taxes
Next: Externalities →
More from this Section
- Transfer payment
Governments typically redistribute a share of tax revenues back to specified groups of ...
- Merger Arbitrage
Merger Arbitrage, also called “Risk Arbitrage,” is an investing approach that seeks ...
- Capital adequacy management
Capital adequacy management is a bank’s decision about the amount of capital it should ...
- Land Trust
Land Trust is a legally valid trust contract between a homeowner and an administrator ...
- Forward exchange rate
Forward exchange rate is the exchange rate for a forward transaction. ...