<P> 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 . For example , an increase in supply will disrupt the equilibrium , leading to lower prices . Eventually , a new equilibrium will be attained in most markets . Then , there will be no change in price or the amount of output bought and sold -- until there is an exogenous shift in supply or demand ( such as changes in technology or tastes ) . That is , there are no endogenous forces leading to the price or the quantity . </P>
<P> 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 . For example , an increase in supply will disrupt the equilibrium , leading to lower prices . Eventually , a new equilibrium will be attained in most markets . Then , there will be no change in price or the amount of output bought and sold -- until there is an exogenous shift in supply or demand ( such as changes in technology or tastes ) . That is , there are no endogenous forces leading to the price or the quantity . </P>
when would a system not return to the original equilibrium but establish a new one
when would a system not return to the original equilibrium but establish a new one
if there is a change in demand or supply conditions
if there is a change in demand or supply conditions