Answer:
It determines the Price in a free market.
Explanation:
The point that supply and demand meets is the price of the good in a free market with a perfect competitive market.
Equilibrium is defined as the price-quantity pair where the quantity demanded is equal to the quantity supplied, represented by the intersection of the demand and supply curves. Market equilibrium is a situation in a market when the price is such that the quantity that consumers wish to demand is correctly balanced by the quantity that firms wish to supply.
