What is Market Equilibration? What important role does it play in resource allocation in the markets?

The market equilibrium point is the point at which the quantity demanded and the quantity supplied are equal and the price is agreeable to both consumers and producers.

At this point, all of the supply is consumed. This leads to no wastage of resources as everything that is produced is consumed. Also, at this point, the demand of the consumers is being adequately met and the resources are being allocated to the correct products.