Which statement best describes general equilibrium?

[stevesmith]

Hi everyone, I’m trying to understand the concept of general equilibrium in economics.
Which statement best describes it in a simple way? I know it has something to do with supply and demand across multiple markets, but I’m not fully clear.
Any easy explanation would be appreciated!

 

[Felix]

It’s the state where all interconnected markets reach a price point where supply equals demand at the exact same time.

 

[Stacy]

General equilibrium describes a state in an economy where supply and demand are balanced simultaneously across all markets. In this condition, prices adjust so that resources are efficiently allocated, and no market experiences excess supply or excess demand, ensuring overall economic stability and coordination.

 

[MitchelThe]

It’s basically the "big picture" version of economics. While partial equilibrium looks at one market in a vacuum, general equilibrium says that everything wages, rent, and goods must balance out at the same time to be stable.