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What is equilibrium?
Equilibrium refers to the state that market supply and demand reach equilibrium in the market. In the economic system, an economic affair is in the interaction of various economic forces. If various forces related to all aspects of economic affairs can restrict or offset each other, then economic affairs will be in a relatively static state and will remain unchanged. At this time, we call economic affairs in a state of balance. Consumers and producers decide the quantity of goods they are willing and able to buy or provide according to market prices. Consumers and producers make their own calculations, enter the market together, and finally decide the market equilibrium. Therefore, in an equilibrium state, it is the most favorable possible price for both parties.