m, ek-wuh-]
. | 1. | a state of rest or balance due to the equal action of opposing forces. |
| 2. | equal balance between any powers, influences, etc.; equality of effect. |
| 3. | mental or emotional balance; equanimity: The pressures of the situation caused her to lose her equilibrium. |
| 4. | Chemistry. the condition existing when a chemical reaction and its reverse reaction proceed at equal rates. |
Equilibrium
The state in which market supply and demand balance each other and, as a result, prices become stable.
Investopedia Commentary
The equilibrium price is the price at which the supply of goods matches demand.
Related Links
Economics Basics Tutorial
See also: Demand, Economics, Orderly Market, Supply
equilibrium e·qui·lib·ri·um (ē'kwə-lĭb'rē-əm, ěk'wə-)
n.
A condition in which all influences acting upon it are canceled by others, resulting in a stable, balanced, or unchanging system.
The state of a chemical reaction in which its forward and reverse reactions occur at equal rates so that the concentration of the reactants and products does not change with time. Also called dynamic equilibrium.
Mental or emotional balance.
| equilibrium (ē'kwə-lĭb'rē-əm) Pronunciation Key
Plural equilibriums or equilibria
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