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Equilibrium |
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Equilibrium The stable state of the system. See: Attractor. Equilibrium A state of stable prices brought about by the rough equality of supply and demand. This applies for consumer goods, securities, and most other goods and services. Equilibrium What Does Equilibrium Mean? The state in which market supply and market demand balance each other out, resulting in stable market prices. Generally, when there is too much supply for goods or services, the price goes down, which results in higher demand. The balancing effect of supply and demand results in a state of equilibrium. Investopedia explains Equilibrium The equilibrium price occurs where the supply of goods matches the demand for goods. When a major index experiences a period of consolidation or sideways momentum, it can be said that the forces of supply and demand are relatively equal and that the market is in a state of equilibrium. Related Terms: Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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