Market equilibrium - is the state of the economy, where the number of goods for which there is strong demand at a certain price, equal to the quantity of goods offered for sale at the price demanded.
part of the economic space in which there are the interests of buyers and sellers is called the economic field.The usual life sale of goods can take place completely different prices, limited the upper limit of the price of demand and the lower limit of the offer price.The price of such real deal is conditioned by several factors: the correlation of forces (monopoly or monopsony);irrational behavior due to lack of experience or lack of awareness of participants of transactions.
In this economic environment there is a strong point (or market equilibrium ), where neither the buyer nor the seller is not beneficial to me to install situation.At this point the optimization of market behavior.
price at which the goods on the market of the demand for it, is called equilibrium.The corresponding amount of goods offered in the market - supply equilibrium.
equilibrium price is at the point of intersection of supply and demand.It is an optimal price.That is, if the market price falls below the equilibrium, it would show a deficit of the goods, and if rises above equilibrium - unrealizable happen overstock products.In both cases, the market mechanism starts to work, is putting pressure on prices from lower and upper side to achieve the equilibrium price.
Market equilibrium will continue until stability remains non-price factors influencing shifts in supply and demand.In a normal economy, equilibrium fluctuations are temporary.As a result, fluctuations in the price in the end is to be installed a new equilibrium price.This is the main principle of the market.At the micro level
allocate the balance of two types: private and general market equilibrium.
Private market equilibrium - a situation where the public total production consists of individual product groups that make individual producers and sold them to individual groups.
overall market equilibrium - a situation where there is a match between the social total production and the total value of the national income, which is intended for human consumption, that is a balance between purchasing power and offer them the amount of goods and services.
Market equilibrium is considered to be stable in the case where the deviation from it involves the simultaneous return to its original state.Otherwise, the equilibrium is unstable.
instantaneous equilibrium is the situation when the offer on the market does not change.
The state of the market has a direct impact conducted by the state tax policy. The tax impact on the market equilibrium comes to action the following mechanism.
Tax revenues regulate social strata.Additional income affect the purchasing power of the non-state sector of the economy.This tax increase reduces the incomes of enterprises and households and their consumption and savings opportunities.Reducing tax rates has a positive effect on the income of households and businesses, leading to stimulation of demand.
Taxes are costs which lead to an increase in commodity prices, they are passed on to producers and then to consumers.
does not matter, pay taxes seller or the buyer in any case it affects the state of supply and demand curves.If the buyer pays, falling demand;if the seller - reduced sentence.
