An in-depth exploration of market equilibrium, where supply and demand are balanced at the prevailing price, including historical context, key events, models, importance, applicability, and related concepts.
The Profit Motive is the desire for gain as a motive in economic activity. While it implies the goal of maximizing profit, it can also suggest selfishness. Adam Smith highlighted its role in achieving Pareto efficiency through rational choices and the price mechanism.
Competitive Equilibrium, also known as Equilibrium Price, represents a state in market economics where supply equals demand, ensuring that all market transactions occur without excess supply or demand.
A market in which price is determined by the free, unregulated interchange of supply and demand. The opposite is a controlled market, where supply, demand, and price are artificially set.
A comprehensive guide to understanding the supply curve, including its definition, how it works, and practical examples. Learn about the factors affecting supply and how changes in price influence the supply of goods and services.
