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In economics, general equilibrium theory attempts to explain the behavior of supply, demand, and prices in a whole economy with several or many interacting markets, by seeking to prove that the interaction of demand and supply will result in an overall general equilibrium.
An equilibrium point is hyperbolic if none of the eigenvalues have zero real part. If all eigenvalues have negative real parts, the point is stable . If at least one has a positive real part, the point is unstable .
It follows that the market value of total excess demand in the economy must be zero, which is the statement of Walras's law. Walras's law implies that if there are n markets and n – 1 of these are in equilibrium, then the last market must also be in equilibrium, a property which is essential in the proof of the existence of equilibrium.
In most simple microeconomic stories of supply and demand a static equilibrium is observed in a market; however, economic equilibrium can be also dynamic. Equilibrium may also be economy-wide or general, as opposed to the partial equilibrium of a single market. Equilibrium can change if there is a change in demand or supply conditions.
Mechanical equilibrium: If at every point within a given system there is no change in pressure with time, and there is no movement of material, the system is in mechanical equilibrium. Phase equilibrium : This occurs when the mass for each individual phase reaches a value that does not change with time.
Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a macroeconomic method which is often employed by monetary and fiscal authorities for policy analysis, explaining historical time-series data, as well as future forecasting purposes. [1]
Classical thermodynamics deals with states of dynamic equilibrium.The state of a system at thermodynamic equilibrium is the one for which some thermodynamic potential is minimized (in the absence of an applied voltage), [2] or for which the entropy (S) is maximized, for specified conditions.
At equilibrium, the rate of transfer of CO 2 from the gas to the liquid phase is equal to the rate from liquid to gas. In this case, the equilibrium concentration of CO 2 in the liquid is given by Henry's law, which states that the solubility of a gas in a liquid is directly proportional to the partial pressure of that gas above the liquid. [1]