[ee-kwuh-lib-ree-uh
m, ek-wuh-] 
[-ree-uh] . | 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. |
| e·qui·lib·ri·um (ē'kwə-lĭb'rē-əm, ěk'wə-) n. pl. e·qui·lib·ri·ums or e·qui·lib·ri·a (-rē-ə)
[Latin aequilībrium : aequi-, equi- + lībra, balance.] |
In economics, a state of the economy in which for every commodity or service (including labor), total supply and demand are exactly equal. Equilibrium is never actually attained; it is approximated by movements of the market.
Note: Keynesian economics departed from conventional economic theory in demonstrating that economic equilibrium and full employment need not occur together. Therefore, as a system tends toward equilibrium, it might not eliminate unemployment.
A condition in which all influences acting cancel each other, so that a static or balanced situation results. In physics, equilibrium results from the cancellation of forces acting on an object. In chemistry, it occurs when chemical reactions are proceeding in such a way that the amount of each substance in a system remains the same. (See chemical equilibrium.)
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.
