Equilibrium

(redirected from Market equilibrium)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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

a state of balance with no tendency to change. See EQUILIBRIUM MARKET PRICE, EQUILIBRIUM LEVEL OF NATIONAL INCOME, DISEQUILIBRIUM.
References in periodicals archive ?
Then ([mathematical expression not reproducible]) is a two-stage market equilibrium and x is a Pareto-optimal allocation corresponding to a "free trade equilibrium."
Simple computations show that, solving the consumer maximization problems for agents of types [alpha] and [beta] and using a market clearing condition, the market equilibrium price is given by
Second, a change in user expectations can significantly affect market equilibrium. When user expectations are perfect and market equilibrium is stable, an increase in price will lead to a decline in the share of the share of the population that use the network good.
D'Emic gives it a qualified assent, based mainly on Saravia's analysis of the market equilibrium price and of the just price.
In addition, the object of Equation (3) is the optimal mean-variance efficient portfolio for n securities rather than the market equilibrium. In other words, previous studies substitute the market portfolio under the equilibrium condition in CAPM for the unobservable mean-variance efficient portfolio.
Equation (3) gives the commodity market equilibrium.
"The Inefficiency of the Stock Market Equilibrium." The Review of Economic Studies 49 (April): 241-61.
The "Depositors" may withdraw their funds; the "Banks" tend to leverage with debt and accumulate assets to maximise return on equity; the "Counter-parties" may default on their obligations; the "Regulators" seek banking system soundness and market equilibrium; other "Parties" within the interlinked balance sheets may have contingent claims on each other and, if the matters get worse, the "Public/tax payers" face the cost of deposit protection and financial crisis.
These movements along and/or shifts in the supply and demand curves are reflected in the market equilibrium prices and quantities illustrated in Figures 1 and 2.
Removing emotion from the mix supports a quicker return to market equilibrium. For the current recovery to prosper, we need investors to step in and prosper as well.
"In the case of sterile injectables, there is very little margin for error, so a lack of sustained investment in infrastructure and vigilant quality focus can produce what economists term a 'bad market equilibrium,' particularly the problem of reliability, in which quality problems are rife," they wrote.
The market equilibrium model above is perfect in theory but the application is not convenient.