The point of equilibrium will be known by the criterion…
“The point of equilibrium will be known by the criterion that an infinitely small amount of commodity exchanged in addition, at the same rate, will bring neither gain nor loss of utility.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Utility is unchanged when an infinitesimal trade occurs at the same rate, indicating equilibrium.
In simple terms: Equilibrium means no net gain or loss from tiny trades.
Key Takeaway
Recognize when marginal changes no longer affect satisfaction.
Themes
economics
equilibrium
utility
trade
marginal analysis
Mood
analytical
neutral
Type
theoretical
educational
When to use this quote
- pricing decisions
- market analysis
- policy evaluation
- risk assessment
Key Concepts
Microeconomics
Pareto efficiency
price theory
Questions to Reflect On
- How do you identify equilibrium in real markets?
- When does marginal analysis fail?
A Different Perspective
Equilibrium may shift with larger changes or external shocks.