The price at which the number of units produced equals the number of units sold. It means that at a specific price, there is neither a surplus or shortage of a product in the market.
Examples of equilibrium are:
$15 for a CD is the equilibrium price because $20 will cause a surplus, and $10 will be too low.
If there is an exporter who is willing to export oranges from Florida to Asia, he will increase the demand for Florida's oranges. An increase in demand will create a shortage, which increases the equilibrium price.
Tackk made by Khiayla and Emma