Economic equilibrium

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Economic equilibrium

Post by tranthuongbn on Tue Dec 28, 2010 2:04 am

When the price is above the equilibrium point there is a surplus of supply; where the price is below the equilibrium point there is a shortage in supply. Different supply curves and different demand curves have different points of economic equilibrium. In most simple microeconomic stories of supply and demand in a market a static equilibrium is observed in a market; however, economic equilibrium can exist in non-market relationships and can be dynamic. Equilibrium may also be multi-market or general, as opposed to the partial equilibrium of a single market.
In economics, the term equilibrium is used to suggest a state of "balance" between supply forces and demand forces. For example, an increase in supply will disrupt the equilibrium, leading to lower prices. Eventually, a new equilibrium will be attained in most markets. Then, there will be no change in price or the amount of output bought and sold — until there is an exogenous shift in supply or demand (such as changes in technology or tastes). That is, there are no endogenous forces leading to the price or the quantity.
Not all economic equilibria are stable. For an equilibrium to be stable, a small deviation from equilibrium leads to economic forces that returns an economic sub-system toward the original equilibrium. For example, if a movement out of supply/demand equilibrium leads to an excess supply (glut) that induces price declines which return the market to a situation where the quantity demanded equals the quantity supplied. If supply and demand curves intersect more than once, then both stable and unstable equilibria are found.

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Re: Economic equilibrium

Post by tranthuongbn on Thu Jan 06, 2011 2:16 am

It is known as the Sindhu Sagar to Indians since the Vedic period of their history, and an important marine trade route in the era of the coastal sailing vessels from possibly as early as the 3rd millennium BCE, certainly the late 2nd millennium BCE through the later days known as the Age of Sail. By the time of Julius Caesar, several well-established combined land-sea trade routes depended upon water transport through the Sea around the rough inland terrain features to its north.

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