Equilibrium is where the supply curve and demand curve intersect. The interaction between buyers and sellers determines the price of a product or service.
Buyers compete against other buyers for goods. Sellers compete against other sellers.
Incentives push the price toward the equilibrium price. If the price is too high, buyers have an incentive not to buy, and buyers get scarce. Sellers now have an incentive to lower their prices.
If the price is too low, buyers have an incentive to buy and are plentiful, and sellers have an incentive to raise their prices as their products are in high demand.
A contractor is slow in the winter and has an incentive to lower his prices just to keep busy. In the summer, he has more work than he can handle so he raises his prices, taking only the most profitable jobs.
Can you see the prices in your business moving at times toward an equilibrium based on supply and demand incentives?