What is the definition of equilibrium in market economics?

Equilibrium in market economics is defined as the point where the supply and demand curves meet. This intersection indicates that the quantity of goods consumers are willing to purchase at a given price matches the quantity that producers are willing to sell. At this point, the market is in balance, meaning there is no surplus or shortage of goods.

When supply equals demand, there is stability in pricing, making it an optimal point for both consumers and producers. Changes in either demand or supply can shift the curves, leading to a new equilibrium price and quantity, illustrating the dynamic nature of market economics. Understanding this concept is crucial for analyzing how markets operate, as it helps identify how various factors can impact pricing and availability of goods.