Final answer:
Market equilibrium occurs where the supply and demand curves intersect, representing the equilibrium price and quantity where quantity demanded equals quantity supplied. At this point, there is neither a surplus nor a shortage. Thus, the option b is the correct answer.
Step-by-step explanation:
During market equilibrium, the following occur: Supply and demand meet at a specific price and at a specific quantity. This is represented graphically where the supply (S) and demand (D) curves intersect, indicating the equilibrium price and equilibrium quantity. At this point, the quantity demanded is equal to the quantity supplied. When the market is in equilibrium, there is no excess supply (surplus) or excess demand (shortage). If the price were set above this equilibrium point, supply would be greater than demand, leading to a surplus. Conversely, if the price were set below the equilibrium, demand would exceed supply, leading to a shortage. In either case, market forces tend to push the price toward the equilibrium level. Options a, c, and d do not apply as during equilibrium; supply is not greater than demand, and the meeting point is at neither a "demand point" nor a "supply point" but rather where both curves intersect.