👉 In economics, an equilibrium is a state of economic conditions in which all producers and consumers have realized their full potential. Equilibria are characterized by prices that reflect marginal costs and marginal benefits to both producers and consumers. An example of an equilibrium might be when there is sufficient supply of goods or services such that the market price for those goods or services is at its equilibrium level, meaning it is not higher or lower than the cost of production. This equilibrium position is stable because as prices increase or decrease
