equilibrium model

An equilibrium model describes a state where different forces or factors in a system balance each other out, resulting in stability. In economics, it often refers to a situation where supply equals demand, meaning the quantity of goods or services produced matches what consumers want to buy at a certain price. When the market is in equilibrium, there’s no tendency for prices or quantities to change unless external factors intervene. It provides a simplified way to understand how prices and quantities settle into a stable point where the system is self-regulating.