industry equilibrium

Industry equilibrium occurs when the amount of goods or services that producers want to supply matches the amount that consumers want to buy at a given price. In this state, there's no tendency for prices to change because supply equals demand. If demand increases, prices tend to rise until supply catches up; if demand decreases, prices fall until supply aligns. It's a stable point where the market clears, ensuring that resources are allocated efficiently without shortages or surpluses. Essentially, industry equilibrium represents a balanced market condition where the forces of supply and demand are in harmony.