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. When the market price is above the equilibrium price, a surplus occurs, leading to unsold goods. Conversely, if the price is below equilibrium, a shortage arises, causing consumers to compete for limited products. This balance helps maintain stability in the market for goods like apples or electronics.