There are many reasons why a consumer market equilibrium may be unstable, and it depends on which school of economic thought you follow. Generally, if there actually is a consumer equilibrium (which some believe does not truly occur) then what will cause it to become unstable is the effect of random shocks:
I.e.) let future consumption for any period be ct+j = ct + Et.
E is a random shock variable which is normally distributed around the mean (which we'll assume to be 0). Consumption in any period is simply equal to consumption in the period of time = t plus whatever shocks occurs in the economy (i.e.) political unrest, social movements, oil crises, etc.). In an economy, small shifts in variables such as consumption can cause larger changes because once an economy moves away from equilibrium, it causes a resulting change in other key equations which is no longer optimal. How the economy restores to equilibrium is also a debate amongst economist: Keynesians believe that wages/prices are 'sticky' and thus equilibrium is slow to reoccur after a shock; classicists believe that wages/prices are not sticky so that equilibrium will reestablish itself quickly. The rate at which an economy corrects these shocks will also affect how unstable equilibrium is. Finally, equilibrium can also constantly change due to factors such as technological growth. The economy needs time and information to adjust to these new equilibria and this can cause instability.
cause in real life market never remains at equilibrium, many factors affect market price and quantity
when does consumer attain equilibrium under the utility approach
Market equilibrium is this situation when market demand is equal of market supply
consumer equilibrium states that consumer maximise his utility with the given income and with the given price or when a consumer getting maximum satisfaction with available resources then he will be in a state of equilibrium.
consumer protection
cause in real life market never remains at equilibrium, many factors affect market price and quantity
Unstable.
If an object is in a state of unstable equilibrium, any displacement will lower that objects center of gravity.
when does consumer attain equilibrium under the utility approach
Market equilibrium is this situation when market demand is equal of market supply
consumer equilibrium states that consumer maximise his utility with the given income and with the given price or when a consumer getting maximum satisfaction with available resources then he will be in a state of equilibrium.
consumer protection
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.
Explain the consumer equilibrium with the help of indifference curve?
illustrate and explain e the consumer equilibrium ender cardinalist and ordinalist?
It was found experimentally that Market has to re-establish Equilibrium via Market mechanism. Such that Market equilibrium is a desired status in the market where both suppliers and Consumers will tend re-establish market equilibrium (through demand & Supply) undeliberately.
Equilibrium and economies scale in market economy