Answered: What's the difference between economic…

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter3: Demand, Supply, And The Market Process

Section: Chapter Questions

Problem 7CQ

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What's the difference between economic equilibrium and market equilibrium?

Please give the most complete answer in not more than 3 sentences.

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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Step 1 Market equilibrium

What's the difference between economic equilibrium and market equilibrium?

Definition of Market Equilibrium-

Market equilibrium is a situation where for a particular commodity supply is equal to demand. When the market is in the equilibrium, there is no tendency for the prices to change. We can say the market-clearing price has been achieved.
A market is a place where sellers and buyers meet to exchange money for goods and services.

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