Economic equilibrium occurs when market forces are in balance, meaning there is no inherent tendency for change unless external factors shift. 1. Market (Partial) Equilibrium
: The price at which the quantity demanded equals the quantity supplied. Economic equilibrium occurs when market forces are in
: Often cited as the mechanism that naturally guides markets toward this state through competition. 3. Macroeconomic Equilibrium Economic equilibrium occurs when market forces are in
: Named after Léon Walras, this theory uses complex math to prove that a set of prices exists that can balance all markets at once. Economic equilibrium occurs when market forces are in
: The specific amount of a good bought and sold at that price.