Economic Equilibrium Definition. Definition and meaning Market equilibrium , also known as the market clearing price , refers to a perfect balance in the market of supply and demand, i.e. In economics, general equilibrium refers to where demand and supply have equal status (are equal to each other). The equilibrium quantity is simultaneously equal to both the quantity demanded and quantity supplied, which means that there is no shortage nor surplus in the market. As a result, there is no variation in economic variables with regards to equilibrium stats at a … Economic equilibrium, also known as market equilibrium, refers to an economic state where there occurs a balance between economic forces. Equilibrium is simply a state where conflicting or overlapping forces strike a point of symmetry, or balance. Gerard Debreu: A French-American economist and mathematician and winner of the 1983 Nobel Memorial Prize in Economics for his research in general equilibrium … We say the market-clearing price has been achieved. equilibrium meaning: 1. a state of balance: 2. a calm mental state: 3. the state in which the reactants (= substances…. when supply is equal to demand. Equilibrium Defined. Equilibrium definition is - a state of intellectual or emotional balance : poise. Equilibrium on a Supply and Demand Graph. In a competitive economy where there are many buyers and sellers, supply and demand will constantly adjust and change to market conditions. Learn more. This point is determined by observing the … This is, in fact, the prime criterion for market equilibrium. The History of General Equilibrium Theory The general equilibrium theory can be traced back to 1874 where a French economist known as Leon Walras, invented it during his very first work, Elements of Pure Economics. Equilibrium Quantity: Economic quantity is the quantity of an item that will be demanded at the point of economic equilibrium . Did You Know? In economics, economic equilibrium is a state of the world where economic forces are balanced and in the absence of external influences the (equilibrium) values of economic variables will not change.It is the point at which quantity demanded and quantity supplied are equal. How to use equilibrium in a sentence. The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. Even though equilibrium sounds like the bigger, more complicated word, what we really need to examine here to understand the meaning of equilibrium quantity is that last part: quantity. Term equilibrium quantity Definition: The quantity exchanged between buyers and sellers when a market is in equilibrium. Definition of market equilibrium – A situation where for a particular good supply = demand. 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