Equilibrium means supply meets demand. Let's say your selling homemade cheese puffs. You start out selling them at $1.00 a puff, but no one is buying them. You lower the price to $0.75 and 12 people buy a puff. Then you lower the price to $0.50 and more people start to buy them. The cheese puffs are also selling faster. Once again, you lower the price to $0.25 a puff, but so many people are buying them so fast, that you can't keep up with demand. So, you decide to make the price $0.35, which is equilibrium. It's right in between how fast you can make cheese puffs and how many people buy them at a certain rate. Supply meets demand. That's exactly where you want to be, right in the middle. Also, since you reacted quickly to all of the changes, you are be price elastic. Price elastic means to rebound quickly to a change in sales. Price inelastic means to react slowly. Think of a rubber band. If it has a lot of elasticity, it will sling faster. If it has very little elasticity, it will sling very slow. If you are trying to sell something and make the most amount of money, I recommend finding equilibrium and being price elastic. Also, let me know if you're selling chocolate covered bacon.^_^ Comment what I should write about next.
-Scotty
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