Three main conditions are necessary for general equilibrium to hold in the market economy. The first requires that all consumers are in equilibrium meaning that all beneficial exchanges have been made between them. The second is that all inputs are employed in their best use meaning that costs are as low as possible for everything being produced. The third condition requires that

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The first two conditions deal with achieving equilibrium in consumption and production efficiency respectively. The third condition is related to the overall allocation of resources and the production of goods and services that society values. While economic growth is important, it is not a necessary condition for general equilibrium to hold. The distribution of income is also important, but it is not a necessary condition for general equilibrium, as long as all exchanges are beneficial and costs are minimized. The absolute price levels can change as long as they reflect the underlying supply and demand dynamics in the market. Therefore, the right mix of goods being produced is most relevant to achieving general equilibrium.

Three Main Conditions Are Necessary for General Equilibrium to Hold