Another term for equilibrium price is?

1. Analyze the question The question asks for another name for equilibrium price.

2. Explain the concept Equilibrium price is the price at which the quantity demanded equals the quantity supplied. At this price:

• There is no shortage (no excess demand).
• There is no surplus (no excess supply).
• The market "clears", meaning every unit that producers want to sell is bought by consumers.

Because of this, economists also call it the market clearing price.

3. Go through the options

• A. Price floor: This is a government-imposed minimum price, set above equilibrium, and it causes surpluses. It is not the same thing as equilibrium price.
• B. Demand price: This is the price consumers are willing to pay for a given quantity. It is only one side of the market, not the point where both sides meet.
• C. Market clearing price: Quantity demanded = quantity supplied, so there is no leftover stock and no unmet demand. This matches the definition.
• D. Satisfactory price: This is not a standard economic term for equilibrium.

4. Answer The correct option is C. Market clearing price.

5. Exam tip Remember that equilibrium price is the price at which the market clears. Related terms you may see are "equilibrium price = market price = market clearing price". Also remember that a price floor and a price ceiling are government interventions that disturb equilibrium.