What is the condition of equilibrium in a market?

The condition of equilibrium in a market occurs when the quantity of a good or service that producers are willing to supply equals the quantity that consumers are willing to purchase. This situation is represented graphically at the intersection point of the supply and demand curves, where the two curves meet. At this point, the market is balanced, meaning there is neither a surplus (where supply exceeds demand) nor a shortage (where demand exceeds supply).

In practical terms, when the market is at equilibrium, the price is stable, and there is no inherent pressure for it to change, as consumers can purchase the amount they desire at that price, and producers can sell everything they are willing to supply. This equilibrium point is essential as it reflects a state where the interests of buyers and sellers align, facilitating efficient allocation of resources.