Final answer:
A balanced market occurs when supply equals demand, leading to stable prices. The equilibrium price is where the amount of goods consumers are willing to buy equals the amount producers are willing to sell, with no surplus or shortage.
Step-by-step explanation:
A balanced market is a term used to describe a situation where supply and demand within a market are equal, resulting in stable prices.
An equilibrium price, which is an important concept within this context, is the price at which the quantity of goods demanded by consumers is equal to the quantity of goods supplied by producers.
This is the point where the supply and demand curves intersect on a graph, and at the equilibrium price, there are no surplus goods, and everyone willing and able to pay for a product can purchase it without resulting in a shortage.