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Partial and General Equilibrium

Equilibrium is an important concept in economics. In common language, equilibrium refers to the state of a system where all the components are balanced and do not change. In economics, there is a specific meaning, where equilibrium is defined as a state in which the selected interrelated variables are adjusted to each other and therefore remain static when external factors are assumed fixed. Equilibrium is an important concept in education economics, as failure to achieve equilibrium may lead to either surplus or shortage of educational goods or services. In addition, policymakers can also influence the demand and supply of a particular kind of educational goods or services by adjusting their market prices. This entry provides an overview of partial and general equilibrium and explains how ...

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