About Market Equilibrium

in Project HOPE2 months ago


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In previous publications share the law of supply and the law of demand, where the case of the offer is to offer goods and services at the highest possible price, in the case of manufacturers and producers, for demand it is about buying the largest possible quantity of goods and services the lowest possible price, since this time as an economist I bring you the market equilibrium, since the point where there is an equilibrium because the demanders are willing to buy the same units that the suppliers want to manufacture, for the same price , is called market equilibrium or equilibrium point, making it clear that the demand and supply curve intersect creating an equilibrium point with a price and quantity, which represents that the quantity of goods and services demanded is equal to the offer, which creates a market of perfect competition. It is an almost ideal economic situation and unlikely in reality, it is only a market in which the market price arises from the interaction between companies or people who demand a product than others that produce and offer it.

The impact when a static equilibrium develops, all quantities have unalterable values, in a dynamic equilibrium different quantities can grow at the same rate, leaving their ratios unchanged, it will also depend on the economic models applied in the economy of a nation or country and if Actually, with a policy that regulates it at the monetary and fiscal level, the analysis of this change is called comparative statics, because it implies comparing the old equilibrium with the new one.

Graphical and mathematical analysis.


Considering the analysis of the initial point at which the quantity Q1 of a good is demanded at the price P1, it may be the case of an external cause there is an increase in demand up to the quantity Q2, the price of the good will increase until it reaches In P2, it is understood that the supply curve is increasing and the demand curve is decreasing. The point where they intersect is known as market equilibrium, since the quantity demanded of goods and services is equal to the quantity supplied, allowing a market of perfect competition to occur at a time of economic activity, where suppliers and demanders they cannot manipulate prices for a slight moment, thanks to their economic and social impact on a country or nation.



Hello friend @newton666, what good content you share with us, is very educational on a topic of great importance to the flow of the economy. I hope you continue to socialize your experience in the economic area, see you later.

Thanks partner for your comment

Greetings friend @newton666, excellent post, you detail in a precise and coherent way extraordinary technical points from the vision of the economy, this makes that all we can have a suitable understanding of all these terms like, market equilibrium, static equilibrium, comparative statics and in addition you show us a graphical and mathematical analysis, where, you effectively detail the point where the supply and demand curve crosses, which as you well express it is known as market balance, very didactic your post friend, thanks for sharing your extraordinary economic knowledge with all of us, that has a lot of value, since our social life is linked to the economy. Successes.