Market equilibrium occurs when demand and supply meet. At this point, producers of a good are selling exactly how much they produce and consumers are buying exactly how much they want. Most importantly, this comes at a price that both parties are agreeable to.
Supply, Demand, Equilibrium, and Price Controls
Supply and demand are at the heart of economics. Almost every transaction can come down to these two variables which have an overarching impact throughout society. From healthcare to chocolate bars – there is a constant fight to reach economic equilibrium whereby supply and demand meet.