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What is meant by equilibrium? - Economics

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Question

What is meant by equilibrium?

Short Answer
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Solution

Equilibrium refers to a situation in which the quantity demanded of a commodity equals the quantity supplied of the commodity. It refers to the balance between opposite forces of demand and supply. In the market, balance occurs when the quantities demanded and supplied are equal. When the quantity demanded is not equal to the quantity supplied, we say that the market is in disequilibrium.

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Chapter 6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market - TEST YOURSELF QUESTIONS [Page 115]

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Frank Economics [English] Class 12 ISC
Chapter 6 Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
TEST YOURSELF QUESTIONS | Q 2. (i) | Page 115
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