Final answer:
Equilibrium refers to a balanced state, such as the equilibrium price and quantity in a market where supply equals demand. Economic pressures work to restore equilibrium when it is disturbed. This concept also applies to dynamic systems in chemistry and physics, where reactions occur at equal rates in both directions.
Step-by-step explanation:
The concept of equilibrium implies a state of balance. In the context of a market, this refers to the equilibrium price and equilibrium quantity, where the supply of goods matches demand. When a market reaches this point, there's no tendency for the price or quantity to change. If the market is not at equilibrium, however, there will be economic pressures that drive the market toward this balanced state. For example, if there's an excess supply, prices might fall to stimulate demand until equilibrium is reestablished.
An easy way to visualize equilibrium is through the analogy of a beach with sunbathers and swimmers. Just as sunbathers enter the water to cool off and swimmers return to the sand to rest at equal rates, in a market, the rate of product being sold and bought is balanced at equilibrium. This dynamic process is essential not only in economics but also in chemical and physical systems, where equilibrium involves the equal rates of forward and reverse reactions.