Market equilibrium
Market equilibrium refers to the position where the demand for a product is equal to the supply of the product.
The equilibrium price is where the supply of goods matches demand. It should match the buyers price to buy and the producers supply
At the equilibrium price, there is neither excess quantity demanded nor excess quantity supplied. Lets look at a diagram to have a better understanding
Equilibrium price diagram
Buyers and sellers meet to trade at an agreed price
Buyers agree the price by purchasing the good/service
If they do not agree on the price then they do not purchase the good/service and are exercising their consumer sovereignty
This is what the digram says
Market disequibrium
Market disequilibrium occurs when the quantity demanded for a product is either higher or lower than the quantity supplied. Disequilibrium is inefficient as it means there are either shortages or surpluses.