However, when government adopts a draconian price control, it defines the market price of a product and forces all, or a large percentage, of transactions to take place at that price instead of the equilibrium price
. The government price will change only after a lengthy political process, the government price will effectively never be an equilibrium price
The current high central bank policy rate is not justified because inflation is fluctuating within a single-digit band and the exchange rate has reached its equilibrium price
There needs to be an equilibrium price
control which can balance out the manufacturing cost by retail prices.
Wallace and Judge (1959) by the data from 1995 from 21 regions that share a border with each other, attempted to determine the optimum production flow, cattle meat regional equilibrium price
and optimum livestock (cattle) price.
And where these two tendencies meet is called the equilibrium price
. This is theoretically the ideal price, all things being kept equal.
The series of in-class exercises described in this paper teaches that concept and also allows students to demonstrate their ability to properly label and identify supply and demand curves along with the equilibrium price
. We have discovered that many students feel quite confident that they understand the concept of equilibrium and are able to interpret the relevant curves, but when they are forced to illustrate this concept themselves, they tend to struggle.
The following proposition establishes the equilibrium price
In our model, the analogue of the latter cannot happen: If all local equilibrium price
systems are collinear, then the equilibrium allocation also arises as a free trade equilibrium allocation.
What is their equilibrium price
? How many market shares can they obtain?
The existence of bubbles, instead, offers a rationale for the demand of credit, and the bubble on the equilibrium price
of the corresponding asset depends upon the supply of credit.
In the property market, the law of supply and demand is prominent and it dictates the equilibrium price
of a property whether you are talking sale or rent.