why do economists think market in equilibrium is a good thing?

Question

It is a part of my essay question list

It`s a part of my essay question`s list, use the supply and demand model answer it as well.

Answer 1

Equilibrium means stability. Stability assumes the commoditization of products, which assumes a basic, as opposed to extraordinary, profit (or minimized losses as in a monopolistic competition, where there are too many firms and they are fighting for market share in hopes that less efficient or undercapitalized firms will drop out, leaving more of the pie for them, which is a disequilibrium too). Equilibrium is, therefore, calm instead of chaos. Equilibrium is comparatively equitable dealings for all, although this is a normative thing. As previously suggested by others, an economy is simply what it is, and is not necessarily either good or bad. It is descriptive, like a factual weather report. We add the nuances that say if rain is good or bad or warmth is "normal' or not based on averages or someone's subjective comfort level. Still, under most ethical and moral norms, market equilibrium is good because the picture is not in flux. When in flux, some people are placed at a disadvantage from mechanical things beyond their control. Think of a bell curve (and I've had teachers that insisted on it), where the five top-scoring students got an A, while the five bottom scoring students automatically got an F, no matter what their test results would otherwise indicate. Disequilibrium adds an element of luck to those economic choices that economic participants make.

Answer 2

They don't. A market is just a place where buyers and sellers meet. Every transaction matches a buyer and a seller. Does the price of Microsoft or Apple stay the same on the stock exchange every day or even every minute? No.
Equilibrium means balance so the demand from the buyers and the sellers are equal. It is utter rubbish to think this is a static state - it changes from minute to minute. There are simplifications in classroom economics that are not reflected in the real world. The world is full of dynamic markets moving from a point of "equililbrium" to another point constantly.

This doesn't help your answer but you should know the truth!

Answer 3

A market in equilibrium means everything is steady. There are enough workers to work./ People have enough money to buy. Everybody knows what is happening and no one is left out. The market is working efficiently with little waste.

A market out of equilibrium means there are imbalances. There are too many buyers, or many don't have enough money. Businesses are having problems because of changes in tax laws. It means a few people are making lots of money but most people are losing money, and the economy is working inefficiently with lots of waste.

Answer 4

well that makes things economy wise work nicer and easy. If 1000 persons offering gums and 1 person buying them, or 1 person selling it but 1000 trying to buy can not work better than is 500 are selling and 500 are buying.