In economics, what market outcome occurs when quantity supplied equals quantity demanded?

In economics, the market outcome that occurs when quantity supplied equals quantity demanded is called market equilibrium.

At the equilibrium price, buyers are willing to purchase the same quantity that sellers are willing to offer. In a simple supply-and-demand model, this point is where the supply curve and demand curve intersect. The corresponding price is the equilibrium price, and the quantity is the equilibrium quantity.

If the price is above equilibrium, sellers may face a surplus because they offer more than buyers want. If it is below equilibrium, buyers may face a shortage because desired purchases exceed available supply. Price changes can push the market toward a new equilibrium.

Equilibrium does not necessarily mean that every person is satisfied or that the outcome is socially fair. It describes a relationship between supply and demand under specified conditions. Taxes, regulations, changing preferences, and technology can all shift the equilibrium.