Spatial Equilibrium

Spatial equilibrium refers to a state where people and resources are distributed across different locations in a way that balances supply and demand. This concept is often used in economics to explain how factors like wages, housing prices, and job opportunities influence where people choose to live and work. When conditions, such as costs or benefits, change in one area, people will move to another location until a new equilibrium is reached, ensuring that no area has excessive demand or supply. This helps cities and regions develop in a balanced manner over time.