Market equilibrium is the point where the supply of a product matches its demand. At this stage, the quantity of goods that producers are willing to sell equals the quantity that consumers are willing to buy. This balance ensures that there are no shortages or surpluses in the market, leading to stable prices. When the market is in equilibrium, the price of the product is often referred to as the equilibrium price. If the price is too high, there will be excess supply, while a price that is too low will create excess demand. Adjustments in price help restore equilibrium.