Routledge Dictionary of Economics, Second Edition
A state of rest for a market with the quantity of a good or service traded constant and prices not moving up or down, with the consequence that there is no incentive for buyers or sellers to modify their behaviour.
In the simplest case of a market relationship, only the relationship between price and quantity is analysed. If anything else which could affect the quantities demanded and supplied changes, the EQUILIBRIUM is disturbed, e.g. if consumers’ incomes or tastes change, the weather is poor, there is a change of government or a war.
See also: disequilibrium; equilibrium
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