is market equilibrium a valid concept? why?

Answer 1

Absolutely... but let's make a comparison to make it clear. The planet earth's temperature is always in disequilibrium, because the sun does not heat it evenly (because of day and night, etc)... we get wind, because the planet is in a constant state of trying to achieve a state of equilibrium. In economics the markets are in a constant state of disequilibrium, because of various economic factors, but they are in a constant state of trying to reach that state of equilibrium. The market will never remain in a constant state of equilibrium, because there will always be some outside factor which will break that up... for example the labor market could reach a point of equilibrium, however the loanable funds market may not provide enough to businesses to expand enough to maintain that equilibrium, but after that point of being knocked out of equilibrium, wages etc. will adjust to try to reach that equilibrium point again. The markets will affect each other and will always be in flux.

Answer 2

Not only is equilibrium valid is can be considered (is) a tautology. A tautology is something that is fact (instead of hypothesis). I say that because any time a buyer and sell take part in a transaction an equilibrium is reached; think of it as a market-clearing price/quantity. Moreover an equilibrium does not mean effiecent or equitable it just means two sides balance (buyers and sellers in economics). Ergo people reach an equilibrium all the time it just doesn't mean something is "optimized".

Answer 3

the equilibrium of anything is common sense so once you have diverted the focus else where the principals are fraudulent.

market enters the business and the business of business is business, and is the business of government too. all want something.

at this point if you don't throw up you could be the next sociopathic monger at the pit of the stock market, coke up and supervise closely this perception that quality in stacking the economy straight up is no bell curve so it's going to look like the towers coming down in new york when you fabricate concept and cash