What is meant by equilibrium in economics?

In economics, equilibrium refers to a state where market forces are balanced, resulting in no inherent tendency for change. This occurs when the quantity of goods supplied equals the quantity of goods demanded at a given price, leading to a stable market condition. At this point, resources are allocated efficiently, and there are no surplus or shortage issues. Equilibrium can apply to various markets and can shift due to changes in external factors like consumer preferences or production costs.