What term describes the price at which the quantity supplied equals the quantity demanded?

The term that describes the price at which the quantity supplied equals the quantity demanded is the equilibrium price. This is a fundamental concept in economics that signifies a state of balance in a market. At the equilibrium price, the forces of supply and demand are in harmony; sellers are willing to sell the quantity of goods at that price, and consumers are willing to buy that same quantity.

When the market reaches this price point, there is neither a surplus nor a shortage of goods in the market. If the price were above the equilibrium, there would be excess supply, leading producers to lower prices. Conversely, if the price were below equilibrium, demand would exceed supply, prompting sellers to raise their prices. Hence, the equilibrium price ensures that the market operates efficiently, clearing out any discrepancies between supply and demand.

In contrast, terms like market price refer to the current price at which goods are bought and sold but do not necessarily indicate equilibrium. Demand price and supply price are more specific terms that reflect the prices consumers are willing to pay (demand price) and the prices at which producers are willing to sell (supply price), which may not coincide with the equilibrium price.