Market Equilibrium

Market equilibrium refers to the point where the quantity of goods supplied by sellers matches the quantity demanded by buyers. At this balance, prices stabilize because there is no excess supply or shortage. If prices are too high, sellers have unsold goods; if too low, there aren't enough products for eager buyers. Changes in supply or demand can shift this equilibrium, impacting prices and quantities in the market. Essentially, it’s the sweet spot where everyone is satisfied, and the market operates efficiently.