Market equilibrium is a position where quantity demanded is equal to quantity supplied. Suppose you're a led television manufacturer. You manufacture 70 inch television and sell it to retailer at 70,000 INR. Because of increase in intensity of competition your sales turnover ration has decreased. You decided to reduce the price of the television to 60,000 INR and to also cut down the production of television for next month. Your sales turnover ratio began to increase but your warehouse still has unsold goods. You further decrease the cost to 55000 INR at same level of production. When you reviewed the sales turnover ratio next month you found out that you have barely any unsold stock and purchase order of your televisions have started going up. This stage is referred to as market equilibrium. 55000 INR is the equilibrium price because at this price the quantity demanded is equal to quantity supplied.
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