Equilibrium Models

Equilibrium models are frameworks used to understand how different factors interact in a system and reach a state of balance. In economics, for example, these models show how supply and demand influence prices until they stabilize. When changes occur, like a shift in consumer preferences, the model helps predict how the market will adjust to restore balance. Overall, equilibrium models provide valuable insights into how various components within a system work together and adapt over time, helping us comprehend complex dynamics in fields like economics, ecology, and physics.