Le Chatelier's Principle in economics

Le Châtelier’s Principle in economics states that when an economic system experiences a change—such as a shift in supply, demand, or prices—the system naturally adjusts to counteract that change and reach a new equilibrium. For example, if the price of a product rises, producers may increase supply or consumers might reduce their demand. These responses help restore balance in the market. This principle highlights the tendency of markets to self-correct when disturbed, as actors respond to incentives and changes to maintain a new steady state.