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.
Category: Economics
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