Market equilibrium in microeconomics is determined by the intersection of the supply and demand curves. Factors that influence this equilibrium include changes in consumer preferences, shifts in production costs, government policies such as taxes or subsidies, and external factors like technological advancements. When supply and demand are balanced, the market reaches equilibrium where the quantity supplied equals the quantity demanded, resulting in a stable price. Shifts in either the supply or demand curve can disrupt this balance, leading to changes in equilibrium price and quantity. Overall, market equilibrium reflects the point where buyers and sellers agree on a fair price for goods or services.