General Knowledge - Indian Economy - Discussion

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. For example, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal. Market equilibrium in this case refers to a condition where a market price is established through competition such that the amount of goods or services sought by buyers is equal to the amount of goods or services produced by sellers.

Yes it's true that equilibrium is the state when at a given price n at a given time consumer satisfy his equilibrium position or when his planned saving is equal to the investment. It is a state when investment n saving are in equilibrium position. Any effect will not change equilibrium position.

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