In a liquid crystal device according to the embodiment of the invention, a high potential and a low potential relative to the counter electrode potential are alternately applied to the pixel electrode through the switching element. Here, the counter electrode potential is set to be lower than a reference potential, when the reference potential is an electric potential which is obtained by shifting an average electric potential between the high potential and the low potential by an average value between an amount of change in an electric potential of the pixel electrode, caused by a parasitic capacitance of the switching element when the high potential is being applied to the pixel electrode, and an amount of change in the electric potential of the pixel electrode caused by the parasitic capacitance when the low potential is being applied to the pixel electrode.