In economic equilibrium, quantity demanded and quantity supplied are equal. For example, the amount of goods or serivices set by buyers is equal to the amount of goods or services produced by sellers. This is what we call as equilibrium price and this will definitely not change unless demand or supply changes. Based on the lecture, due to scarcity we sometimes consider trade-offs.
For example as what was stated in the lecture, supposedly that you have only six hours left to study for your test in economics and to complete your assignment in graphic design, you have to balance your time or spend more time in either economics or graphic design. You also have to consider the resources that you can maximize in accomplishing both things. Having a fixed quantity and quality of available resources means that you have a fixed supply of materials such as textbooks, notes, design software, etc.
, to use in the time you have left. Scarcity triggers the society to make choices and that’s why there are trade-offs. I agree that economic equilibrium is the state wherein you don’t get any benefits at all in making trade-offs because there is no tendency to change or you alreay chose the best possible alternative which means that you have maximized already your limited resources. Reference Economics Basics: Demand and Supply. ( 2010 ). Retrieved July 15, 2010 from
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