Share This Article:

Economic Definition of equilibrium price. Defined.

Offline Version: PDF

Term equilibrium price Definition: The price that exists when a market is in equilibrium. In particular, the equilibrium price is the price that equates the quantity demanded and quantity supplied, which is termed the equilibrium quantity. Moreover, the equilibrium price is simultaneously equal to the both the demand price and supply price. In a market graph, like the one displayed here, the equilibrium price is found at the intersection of the demand curve and the supply curve. The equilibrium price is also commonly referred to as the market-clearing price.

 

« equation of exchange | equilibrium quantity »

Permalink: http://glossary.econguru.com/economic-term/equilibrium+price

Alphabetical Reference to Over 2,000 Economic Terms