General equilibrium theory

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Notion

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Science and technology

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What Wikipedia says

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.

Excerpt from the Wikipedia article “General equilibrium theory”, under the CC BY-SA 4.0 license. Read the article on Wikipedia