On a supply and demand graph, equilibrium is the point where?

Equilibrium on a supply and demand graph is the point where the quantity supplied equals the quantity demanded. This is represented by the intersection of the supply curve and the demand curve on the graph. At this point, the market is in balance, and there is neither a surplus nor a shortage of goods.

In practical terms, equilibrium determines the market price and the quantity of goods sold. If the price is above the equilibrium point, there will be a surplus as suppliers produce more than consumers are willing to buy. Conversely, if the price is below the equilibrium point, a shortage occurs because consumers demand more than suppliers are willing to produce. Thus, the equilibrium point is crucial for understanding market dynamics and ensuring that resources are allocated efficiently in an economy.