General Equilibrium is an economic concept that describes a situation where supply and demand are balanced across all markets in an economy. In this state, all prices adjust so that the quantity of goods and services produced matches the quantity demanded. This means that every market, whether for goods, services, or labor, is in equilibrium simultaneously. The theory of General Equilibrium helps economists understand how different markets interact and influence each other. It considers the effects of changes in one market on others, illustrating the interconnectedness of economic activities. This framework is essential for analyzing policies and predicting economic outcomes in a complex economy.