What does it mean when a market is in equilibrium?

When a market is in equilibrium, it means that the quantity of goods or services supplied by producers is equal to the quantity of goods or services demanded by consumers. In other words, there is no excess supply or excess demand in the market, and the market price remains stable.

At equilibrium, the market forces of supply and demand are in balance, there is no incentive for producers to change their prices or output levels, and consumers do not have any unfulfilled demands.

It's important to note that equilibrium is a dynamic concept and can be affected by changes in market conditions, such as changes in consumer preferences, technology, government policies, or other factors that can shift the supply and demand curves. When these changes occur, the market will adjust to a new equilibrium point.