Editing Capitalism (section)

=== Equilibrium ===
{{further|Economic equilibrium}}
In the context of supply and demand, economic equilibrium refers to a state where economic forces such as [[supply and demand]] are balanced and in the absence of external influences the ([[:wikt:equilibrium|equilibrium]]) values of economic variables will not change. For example, in the standard text-book model of [[perfect competition]] equilibrium occurs at the point at which quantity demanded and quantity supplied are equal.<ref>{{cite book |author-link=Hal Varian |first=Hal R. |last=Varian |title=Microeconomic Analysis |edition=Third |publisher=Norton |location=New York |year=1992 |isbn=978-0-393-95735-8 |url=https://archive.org/details/microeconomicana00vari_0}}</ref> Market equilibrium, in this case, refers to a condition where a market price is established through competition such that the amount of goods or services sought by [[Law of supply and demand|buyers]] is equal to the amount of goods or services produced by [[Law of supply and demand|sellers]]. This price is often called the competitive price or [[market clearing]] price and will tend not to change unless demand or supply changes.