The price at which there is neither an excess demand nor excess supply is known as the **equilibrium price**.

### Explanation
In economics, the equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers. At this point, there are no inherent forces causing the price to change; thus, the market is considered to be in a state of balance. If the market price is above the equilibrium price, a surplus occurs because the quantity supplied exceeds the quantity demanded. Conversely, if the market price is below the equilibrium price, a shortage occurs as demand exceeds supply. Therefore, the equilibrium price is crucial for efficient market functioning, ensuring that resources are allocated optimally without waste due to excess supply or demand.

### Final Answer
**Equilibrium price**

Question

The price at which there is neither an excess demand nor excess supply is known as the **equilibrium price**.

### Explanation
In economics, the equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers. At this point, there are no inherent forces causing the price to change; thus, the market is considered to be in a state of balance. If the market price is above the equilibrium price, a surplus occurs because the quantity supplied exceeds the quantity demanded. Conversely, if the market price is below the equilibrium price, a shortage occurs as demand exceeds supply. Therefore, the equilibrium price is crucial for efficient market functioning, ensuring that resources are allocated optimally without waste due to excess supply or demand.

### Final Answer
**Equilibrium price**

Knowee AI · Accepted Answer

The price at which there is neither an excess demand nor excess supply is known as the **equilibrium price**.

### Explanation
In economics, the equilibrium price is the price at which the quantity of a good demanded by consumers equals the quantity supplied by producers. At this point, there are no inherent forces causing the price to change; thus, the market is considered to be in a state of balance. If the market price is above the equilibrium price, a surplus occurs because the quantity supplied exceeds the quantity demanded. Conversely, if the market price is below the equilibrium price, a shortage occurs as demand exceeds supply. Therefore, the equilibrium price is crucial for efficient market functioning, ensuring that resources are allocated optimally without waste due to excess supply or demand.

### Final Answer
**Equilibrium price**

The price at which there is neither an excess demand nor excess supply must be the _____ price.Multiple choice question.efficientequilibriumequitable

Question

The price at which there is neither an excess demand nor excess supply must be the _____ price.

Solution

Explanation

Final Answer

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