The commodities are in market equilibrium when they are exchanged for each other according to their intrinsic value. The market equilibrium presents a lasting value balance between the products as the inevitable quantitative changes in the goods should happen in parallel fashion. Under the equilibrium conditions of market supply and demand, the quantitative developments in any of the commodities are followed by all other commodities in the same direction and magnitude.
Historical Backdrop
• JAMES STEUARTPrinciples of Political Economy: equilibria.
• ADAM SMITH The Wealth of Nations: tendency towards equality.
• FREDERIC BASTIAT Economic Harmonies: harmony.
• LEON WALRAS Elements of Pure Economics: economic equilibrium.
• VILFREDO PARETO Manual of Political Economy: general economic equilibrium.
• GUSTAV CASSEL Theory of Social Economy8: the problem of equilibrium.
• KENNETH ARROW and GERARD DEBREU Existence of Equilibrium for a Competitive Economy*; KENNETH ARROW and FRANK KAHN General Competitive Analysis: general equilibrium.