Note: The translation for this entry is currently under quality review. Some content is temporarily displayed in English only.
equilibrium price
The market price at which the quantity of a good or service demanded by buyers equals the quantity supplied by sellers.
Noun
pl: equilibrium prices
This term is a technical expression used primarily in economics to describe a state of market balance. It carries a neutral, scientific connotation, focusing on the mathematical intersection of supply and demand curves rather than the perceived fairness or value of the price.
In professional discourse, it is often contrasted with "market clearing price," though they are frequently used interchangeably. Because it describes a theoretical point of stability, it is commonly used in academic textbooks and financial analysis to explain how prices adjust over time to eliminate surpluses or shortages.
Meanings
Related Words
market pricesupplydemandmarketpricesurplusshortagescarcityallocationcompetitioncommodityconsumerproducerutilityvaluecostrevenueprofitincentivetradeexchangetransactionauctionelasticityquotasubsidytariffinflationdeflationstabilityvolatilityfluctuationadjustmentoptimizationefficiencyPareto optimalitymarginal costmarginal utilityopportunity costequilibriumstagnationsaturationmonopolyoligopolyprice ceilingprice floorcurvegraphintersectionshiftdeterminantpreferenceincomewealthbudget constraintmacroeconomicsmicroeconomicseconometricsgame theoryNash equilibrium