Ans: Market equilibrium refers to the situation for which the supply of a good is equal to the demand for that particular good. Prices never change when a market is in an equilibrium state. Thus, then we say that market achieved the market-clearing price.A market is a place where both buyers and sellers meet for exchanging goods and services. The price mechanism in a market is the reference of how demand and supply intersect for setting the market price and the value of goods sold.Mostly, the planned demand for a good is not equal to the planned supply of it. This state is termed as disequilibrium as then there is either s surplus or shortage, and the firms have some incentive for changing the prices.