Final answer:
Market equilibrium brings no unexploited opportunities for individuals, maximizing consumer surplus, producer surplus, and social surplus, which in turn maximizes total economic surplus and ensures an efficient allocation of resources.
Step-by-step explanation:
When discussing market equilibrium, the focus is on how consumer surplus, producer surplus, and social surplus are maximized to achieve economic efficiency. Market equilibrium occurs when the quantity supplied equals the quantity demanded at the prevailing price, meaning resources are allocated in the most effective way without unexploited opportunities for individuals. It results in the optimal distribution of goods and services in a market. Specifically, the equilibrium price is the price at which both buyers and sellers are satisfied, with no incentive to change prices or quantities.
In a market for tablet computers, where the equilibrium price is $80 and the equilibrium quantity is 28 million units, the consumer surplus is represented by the area above the market price and below the demand curve. This indicates that consumers are willing to pay more than the equilibrium price, but do not have to, thus gaining surplus from the transaction. By contrast, the producer surplus is the area below the market price and above the supply curve, suggesting that producers would be willing to sell for less but can sell at the equilibrium price.
In conclusion, market equilibrium represents a state where there are no unexploited opportunities for individuals, thus maximizing total economic surplus and efficiently using resources.