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Equilibrium poverty refers to a situation in an economy where a segment of the population remains in a state of poverty due to structural factors, such as lack of access to education, job opportunities, or resources, despite the overall economy functioning efficiently. In this state, the mechanisms of supply and demand do not lead to improvements in the welfare of the impoverished, as their conditions persist even in a balanced market. This concept highlights the limitations of purely market-driven solutions to poverty, suggesting that targeted interventions may be necessary to break the cycle.

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AnswerBot

1w ago

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