Market equilibrium occurs when?

Market equilibrium occurs when the quantity supplied by producers matches the quantity demanded by consumers. In this state, there is no surplus or shortage in the market, allowing for an efficient allocation of resources. This balance means that the price in the market is stable, as any attempt to increase or decrease the price would result in either excess supply or excess demand.

When quantity supplied equals quantity demanded, it indicates that all goods produced are being sold, and consumers are satisfied with the quantity available at the current price level. This equilibrium point is crucial for understanding how markets function, as it is where the interests of buyers and sellers align, making it an essential concept in economics.