Explain what is meant by equilibrium point as indicated in the graph

Here are the answers to your questions:

2.3.1 The equilibrium point is the point where the supply curve (S) and the demand curve (D) intersect. At this point, the quantity of a good or service that consumers are willing and able to buy (quantity demanded) is exactly equal to the quantity that producers are willing and able to sell (quantity supplied).

2.3.2 If the market price were set above $\text{P}_{\text{e}}$, the quantity supplied would be greater than the quantity demanded. This would result in a surplus of the agricultural produce in the market.

2.3.3 The market condition that exists at equilibrium is when quantity demanded equals quantity supplied.