When the supply and demand curves intersect, the final, lasting price is achieved. This is called:

Question

Quizplus · Accepted Answer

The intersection of the supply and demand curves is known as the equilibrium price. This is the price at which the quantity demanded by consumers matches the quantity supplied by producers in the market. It is also called the market-clearing price because all goods supplied will be bought by consumers, and there will be no excess supply or demand. Option A, clearance price, is not a commonly used term, and option C, pressure price, is not a term used in economics. Option D, a buyer's market, refers to a situation in which there are more goods available than buyers, giving buyers the advantage to negotiate lower prices. This is not the same as the equilibrium price.

When the Supply and Demand Curves Intersect, the Final, Lasting