Market equilibrium happens when the amount of a product that people want to buy is the same as the amount that sellers are ready to sell. Let's see how this affects prices:

1. Stable Prices: At equilibrium, prices usually stay the same. For instance, if a new toy costs $20 and both buyers and sellers agree on that price, it will likely remain at$20.

2. Changes in Demand or Supply:

   • If more people want to buy a product (like during holidays), the price might go up as we find a new balance.
   • On the other hand, if sellers make more of a product (like if a new factory opens), the price might go down.

3. Using Graphs: When we draw a graph, the demand line goes down and the supply line goes up. Where the two lines meet is called the equilibrium price.

4. Things That Can Change This Balance:

   • What consumers like
   • How much it costs to make products
   • New technology improvements

By understanding these ideas, we can see how supply and demand work together to change prices!