what is equilibrium in market ?

In a market, equilibrium refers to the point at which the supply of a good or service is equal to the demand for that good or service, resulting in a stable price.

When the quantity of a good or service supplied by producers is equal to the quantity demanded by consumers, the market is in a state of balance, and the price of the good or service is said to be at equilibrium. At this point, there is no excess supply or excess demand, and buyers and sellers are satisfied with the current price and quantity.

In a competitive market, the equilibrium price and quantity are determined by the intersection of the supply and demand curves. The demand curve represents the quantity of the good or service that consumers are willing and able to buy at different prices.
The point where the two curves intersect is the equilibrium price and quantity.

If the price of a good or service is above the equilibrium level, there will be excess supply, and producers will be motivated to decrease their prices to sell more of their product. If the price is below the equilibrium level, there will be excess demand, and consumers will be motivated to bid up the price to buy more of the product.

Overall, the concept of equilibrium is a fundamental principle in economics, and understanding how markets reach equilibrium is essential for analyzing market behavior and predicting market outcomes.

Also read - What is gross national product (GNP)?

Source:- google