• The market is said to have reached an equilibrium price when the supply of a commodity matches the demand.

  • A market in equilibrium exhibits three characteristics: the behavior of agents is consistent, agents have no incentives to change their behavior, and the results of equilibrium are determined by a dynamic process.
  • In the economy, several types of equilibrium are used.
  • Disequilibrium is the opposite of equilibrium and is characterized by changes in conditions that affect the market equilibrium.
  • In reality, the markets are never in a state of perfect equilibrium, although prices tend to be.