jafnvægismarkaður
Jafnvægismarkaður is an Icelandic term that translates to "equilibrium market" in English. It refers to a theoretical market condition where the forces of supply and demand are balanced. In such a market, the price of a good or service is such that the quantity demanded by consumers is exactly equal to the quantity supplied by producers. This point is often referred to as the market clearing price.
At the jafnvægismarkaður, there is no excess supply or shortage of the product. Producers are willing to
The concept of jafnvægismarkaður is a fundamental principle in microeconomics and is used to analyze how markets