What are the key differences between short run and long run equilibrium in economics?

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1117597

2026-03-20 21:05

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In economics, the key difference between short run and long run equilibrium is the time frame in which adjustments can be made. In the short run, prices and wages are sticky and cannot adjust quickly, leading to temporary imbalances in supply and demand. In the long run, prices and wages are flexible and can adjust to reach a new equilibrium, resulting in a more stable market.

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