[This is part of the series: The Complete Guide To Economics 101.]
What is an equilibrium in economics?
Equilibrium in Economics is nothing other than the price and quantity at which supply and demand are balanced.In a given nation, for example, you could look at market equilibrium for cotton as being 6 million bales.
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Price
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
$2.50
$2.75
$3.00
|
Quantity Supplied
0
1 million bales
2 million bales
3 million bales
4 million bales
5 million bales
6 million bales
7 million bales
8 million bales
9 million bales
10 million bales
11 million bales
12 million bales
|
Quantity Demanded
12 million bales
11 million bales 10 million bales 9 million bales 8 million bales 7 million bales 6 million bales 5 million bales 4 million bales 3 million bales 2 million bales 1 million bales 0 |
Graphically, this table would be represented like this:
