What is the equilibrium price in a market?

The equilibrium price in a market is the price at which the amount of goods or services that producers want to sell matches the amount that consumers want to buy. This balance is important because it means that there are no shortages or surpluses of the product. For example, if a store sells apples, the equilibrium price is where the number of apples available for sale equals the number of apples that customers want to buy at that price. If the price is too high, fewer people will buy apples, leading to unsold apples, while if the price is too low, there won’t be enough apples for everyone who wants them. Finding this equilibrium price helps ensure that the market works smoothly and efficiently.