File: //old_home_backup/consumeraffairs.org.uk/public_html-20241004153750/equilibrium-condition.php
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd">
<html xmlns="http://www.w3.org/1999/xhtml">
<head><!-- TemplateBeginEditable name="EditRegion2" -->
<title>Economic Consumer Affairs -
Equilibrium Condition
</title><!-- TemplateEndEditable -->
<meta name="description" content="Economist - Economist Online" />
<meta name="keywords" content="Economist - Economist Online" />
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8" />
<script type="text/javascript" src="/js/jquery-1.4.2.min.js"></script>
<script type="text/javascript" src="/js/script.js"></script>
<script type="text/javascript" src="/js/coin-slider.min.js"></script>
<link href="/style.css" rel="stylesheet" type="text/css" />
<link href="style.css" rel="stylesheet" type="text/css" />
</head>
<body>
<div class="main">
<div class="header">
<div class="header_resize">
<div class="logo"> <a href="/index.php"><img src="/images/logo.gif" width="200" height="130" alt="Economic Consumer Affairs Starting your own business" /></a> </div>
<div class="menu_nav">
<ul>
<li><a href="/index.php"><span>Home</span></a></li>
<li><a href="/applied-economics.php"><span>Applied Economics</span></a></li>
<li><a href="/bank-of-england.php"><span>Banks</span></a></li>
<li><a href="/beveridge-william.php"><span>Beveridge</span></a></li>
<li><a href="/capital-stock.php"><span>Capital Stock</span></a></li>
<li><a href="/earned.php"><span>Income</span></a></li>
<li><a href="/economy/UK/economy.php"><span>UK Economy</span></a></li>
<li><a href="/contact.php"><span>Contact</span></a></li>
</ul>
</div>
<div class="clr"></div>
<div class="slider">
<div id="coin-slider"> <a href="/index.php"><img src="/images/slide1.jpg" width="960" height="180" alt="Bank of England " /></a> <a href="/index.php"><img src="/images/slide2.jpg" width="960" height="180" alt="How to make a start with your own business" /></a> </div>
<div class="clr"></div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="content">
<div class="content_resize"><!-- TemplateBeginEditable name="EditRegion1" -->
<div class="mainbar">
<div class="article">
<h1>
Equilibrium Condition
</h1><script type="text/javascript"><!--
google_ad_client = "";
/* links in a line #215670 */
google_ad_slot = "8962789804";
google_ad_width = 468;
google_ad_height = 15;
//-->
</script>
<script type="text/javascript"
src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
</script>
<div id="images3"><img src="/economics-imgs/economics-218.jpg" alt="Equilibrium Condition" /></div>
<p>
Equilibrium, the condition in which there is no inducement to change.<br /><br />Equilibrium in a market for commodities, or capital, or labour, is reached when the supply coming on to the market at any given price is equal to the demand at that price. Since the number of units bought at a price must necessarily equal the number sold at that price, supply and demand in this sense must be equal at every price. But there is only one price at which there is equilibrium in the sense that at that price the amount that suppliers wish to supply is just equal to the amount that consumers are freely prepared to buy. At a lower price suppliers would supply less than this number and consumers would want to buy more than this number so that the price would tend to rise; at a higher price suppliers would supply more and consumers buy less so that the price would tend to fall. Only at the equilibrium price are the two equal; only at this price are buyers' preferences consistent with those of sellers.<br /><br />Much economic analysis of what determines prices and quantities of commodities and services consists of establishing the conditions of equilibrium on the basis of certain assumptions. For example, to explain the quantity of a commodity demanded at any price requires a statement of the individual consumer's conditions of equilibrium. This follows from two basic assumptions: (a) that individuals always spend their incomes in such a way that utility is maximized; (b) that relative to other goods the additional utility from additions of a commodity diminishes the larger the quantities possessed. Given the prices of all commodities, a consumer may be said to be in equilibrium when he is distributing his income among various commodities so that an additional (small) unit of expenditure would yield the same additional (marginal) utility from all of them. Full market equilibrium further requires that for each commodity price is such as will generate just enough demand to clear the market of supplies forthcoming at that price. On the supply side, given the basic assumption that individual producers try to produce and sell in such a way as to maximize their net profit, the conditions of equilibrium depend on the assumptions made about the behaviour of production costs and sales revenue as the output of an individual producer is changed. Again, full market equilibrium for a commodity requires the further condition that the price is one at which every producer is in equilibrium but also the total of output is sufficient to satisfy the total demands of all consumers at that price.<br /><br />
</p>
<h2>
ExamplesEconomist - Economist Online
</h2>
<ul>
<div id="images4"><img src="/econ/images-economy-633.jpg" alt="Equilibrium Condition" /></div>
<li><a href="/equilibrium-conditions.php"> Equilibrium Conditions </a></li>
<li><a href="/exchange-control-one.php"> Exchange Control One </a></li>
<li><a href="http://www.trcollege.net/articles/86-marshalls-welfare-definition-of-economics" target="_blank"> Marshall's Welfare Definition Of Economics </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
<li><a href="http://www.waterstones.com/waterstonesweb/products/mark+jewell/key+definitions+for+economics+a+level+revision/6506346/" target="_blank"> Key Definitions For Economics A Level Revision: For Ocr Students (book) By Mark Jewell (2008): Waterstones.com </a> <img src="/images/icon_external.gif" width="9" height="9" /></li>
</ul>
<br />
<p>
<spc: %other />
</p>
<div class="clr"></div>
</div>
</div>
<!-- TemplateEndEditable -->
<div class="sidebar">
<div class="gadget">
<h2 class="star"><a href="/index.php">
Equilibrium Condition
</a></h2>
<div class="clr"></div>
<script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- spamdex-display -->
<ins class="adsbygoogle"
style="display:block"
data-ad-client="ca-pub-2121528995419082"
data-ad-slot="8029362605"
data-ad-format="auto"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
</script>
</script>
<script type='text/javascript'><!--// <![CDATA[
OA_show(53);
// ]]> --></script>
<p><a href="/index.php">Economics</a> uses everyday words in a more specific sense than that in which they are used by the non-economist. 'Demand', 'supply', cost', 'market', 'rent' and many other words do not mean the same to economists as they do in everyday usage.<br />
</p>
<p><strong>Recent Reads</strong><br />
<a href="/bank-of-england.php">Banks</a>
<a href="/capital-stock.php">capital</a>
<a href="/markets/economics/debt-conversion.php">debt</a>
<a href="/division-of-labour.php">labour</a>
<a href="/trade/UK/growth-economic.php">economy</a>
<a href="/hume-david.php">David Hume</a>
<a href="/land-tax.php">land tax</a>
<a href="/law-economic.php">law</a>
<a href="/marx-karl.php">Karl Marx</a>
<a href="/pension-term-used.php">pensions</a> <br />
. </p>
<p><a href="http://www.economist.com/business-finance" target="_blank"><img src="/images/econm.gif" alt="<spc: %meta_title />" width="267" height="553" border="0" /></a></p>
<p> </p>
</div>
</div>
<div class="clr"></div>
</div>
</div>
<div class="fbg">
<div class="fbg_resize">
<div class="col c1">
<h2><span>consumeraffairs.org.uk
</span></h2>
<p>Since then his writings have in turn been increasingly reinterpreted as a special case both by some followers and by some economists who had not wholly accepted his writings. The content of economics is in a state of change, and this consumeraffairs.org.uk
site is therefore not a final statement of economic doctrine.<br /><br /><strong>Economics</strong> is in the last resort a technique of thinking. The reader will therefore need to make an intellectual effort, more substantial for some web entries than for others, to get the most interest and value out of this website.<br />
</p>
</p>
</div>
<div class="col c2">
<h2>Ecomical Favourites</h2>
<ul id="spcFooterLinks"><li><a href="/equal-pay.php" title="Equal Pay" alt="Equal Pay">Equal Pay</a></li><li><a href="/equilibrium-condition.php" title="Equilibrium Condition" alt="Equilibrium Condition">Equilibrium Condition</a></li><li><a href="/equilibrium-conditions.php" title="Equilibrium Conditions" alt="Equilibrium Conditions">Equilibrium Conditions</a></li><li><a href="/equities-ordinary.php" title="Equities Ordinary" alt="Equities Ordinary">Equities Ordinary</a></li><li><a href="/estate-duties-taxes.php" title="Estate Duties Taxes" alt="Estate Duties Taxes">Estate Duties Taxes</a></li><li><a href="/euler-leonhard.php" title="Euler Leonhard" alt="Euler Leonhard">Euler Leonhard</a></li><li><a href="/european-coal.php" title="European Coal" alt="European Coal">European Coal</a></li><li><a href="/european-free-trade.php" title="European Free Trade" alt="European Free Trade">European Free Trade</a></li><li><a href="/european-payments-union.php" title="European Payments Union" alt="European Payments Union">European Payments Union</a></li><li><a href="/ex-ante.php" title="Ex Ante" alt="Ex Ante">Ex Ante</a></li></ul></div>
<div class="clr"></div>
</div>
</div>
<div class="footer">
<div class="footer_resize">
<p class="lf">© Copyright 2018 | <a href="mailto:contact@consumeraffairs.org.uk">contact@consumeraffairs.org.uk
</a> |<a href="http://www.economics.ox.ac.uk/" title="Economics" target="_blank"> Economics</a> | <a href="https://www.sandrajonaspublishing.com/">Sandra Blackbush Publishing Unlimited</a> | One Heddon Street | Mayfair | London | W1B 4BD | Consumer Affairs was a not-for-profit organisation offering free advice about debt and money management via guides and reports on its website. </p>
</div>
</div>
</div>
<script type="text/javascript">
var _gaq = _gaq || [];
_gaq.push(['_setAccount', 'UA-31916544-1']);
_gaq.push(['_trackPageview']);
(function() {
var ga = document.createElement('script'); ga.type = 'text/javascript'; ga.async = true;
ga.src = ('https:' == document.location.protocol ? 'https://ssl' : 'http://www') + '.google-analytics.com/ga.js';
var s = document.getElementsByTagName('script')[0]; s.parentNode.insertBefore(ga, s);
})();
</script><script>
(function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){
(i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o),
m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m)
})(window,document,'script','https://www.google-analytics.com/analytics.js','ga');
ga('create', 'UA-87073664-1', 'auto');
ga('send', 'pageview');
</script></body>
</html>