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When is a market in equilibrium?
In elementary economics equilibrium is the intersection between the supply and demand curves. When quantity supplied is said to equal quantity demanded the market has then reached equilibrium.
Types of equilibrium in economics?
stable and unstable <..........................................> Abeer Aamir Equilibrium is the state of balance between forces, influences. Any economy where equilibrium condition prevails is said to be prosperous. The state of equilibrium is found in several aspects of economics. Market Equilibrium Competitive Market Equilibrium General Equilibrium Lindahl Equilibrium Partial Equilibrium Market Equilibrium: In this situation, goods produced are equal to the goods consumed. Competitive Market Equilibrium: CME includes a sector of policies and allocation is done in such a way that each traders maximises his profit function. General Equilibrium: General equilibrium is the study of Supply and demand prices. Lindahl Equilibrium: In this situation, individuals have to pay for any public good according to the marginal benefits they can draw from the public goods. Partial Equilibrium: PE is a state in an economy where market is cleared of some specific goods. The market clearance is obtained when the price of all substitutes and complements as well as income levels of the consumers are in variable.
Which situation is in equilibrium?
A system is said to be social equilibrium when there is a dynamic working balance among its interdependent parts.
When a firm has little ability to influence market prices it is said to be in what kind of a market?
Imperfect monopoly
How did the Marxist school of economic theory challenge the Classical theories?
for classical theories look up thomas malthus ... Also, classical theories say there is an "invisible hand" that guides the economy back to equilibrium. Marx said that the economy should be controlled, thus making to go to equilibrium when you want it to. Only problem is equilibrium isn't a definite spot and depends on market demand and supply. But when the market is controlled these things get trickier. I have only studied oligopoly, monopoly, perfect competition, and competitive monopoly. I would assume that a command economy would be the Monopoly, which determines the price by how much they are willing to supply that is over the marginal cost.
