Final answer:
The intersection of the supply and demand curves on a graph signifies the market's equilibrium point, not a market surplus. Equilibrium occurs when the quantity demanded equals the quantity supplied, with no excess supply or demand at the equilibrium price.
Step-by-step explanation:
When the supply curve and demand curve for a particular good are depicted on a single graph, the point where these two curves intersect is known as the equilibrium point. This equilibrium signifies a state of balance in the market where the quantity of the good that consumers are willing and able to purchase (quantity demanded) exactly matches the quantity that producers are willing and able to sell (quantity supplied). At the equilibrium price, the amount consumers want to buy equals the amount producers want to sell, making it the only price where the market is in a state of balance without any excess supply or demand.
Any price other than the equilibrium price would result in either a market surplus (where quantity supplied exceeds quantity demanded) or a market shortage (where quantity demanded exceeds quantity supplied). Therefore, contrary to the student's initial statement, the intersection of the supply and demand curves does not identify a market surplus; instead, it identifies the equilibrium point in a market.