The equilibrium price is the price at which the quantity of a product demanded by consumers equals the quantity supplied by producers. At this price, there is no surplus or shortage in the market, meaning that all goods produced are sold, and consumers can buy the amount they want without any excess or deficit. This concept is fundamental in economics, as it helps to determine how resources are allocated in a market. Changes in factors like consumer preferences, production costs, or government policies can shift the supply and demand curves, leading to a new equilibrium price.