In
economics,
economic equilibrium is a state where economic forces such as
supply and demand are balanced and in the absence of external influences the () values of economic variables will not change. For example, in the standard text-book model of
perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal.
Market equilibrium in this case refers to a condition where a market price is established through competition such that the amount of goods or services sought by
buyers is equal to the amount of goods or services produced by
sellers. This price is often called the
competitive price or
market clearing price and will tend not to change unless demand or supply changes and the quantity is called "competitive quantity" or market clearing quantity.