In a general equilibrium model

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In a general equilibrium model, all prices are endogenous, meaning that they are determined within the model itself as a result of supply and demand interactions in multiple markets. This is in contrast to exogenous prices which are set outside the model (e.g. by government regulations). The model aims to capture the complex interactions and interdependencies among various markets and factors in an economy, and thus allows for fluctuations and adjustments in response to changes in underlying conditions.

In a General Equilibrium Model