What is the term for the balance point where quantity demanded equals quantity supplied?

The term that describes the balance point where the quantity demanded by consumers equals the quantity supplied by producers is equilibrium. At this point, the market is in a state of balance, with no inherent force causing the price to change. In other words, the amount that consumers are willing to purchase at that price matches exactly with the amount that producers are willing to sell. This condition is essential in understanding how markets function, as it indicates a stable market situation where there is neither excess supply nor excess demand.

In contrast, a price ceiling refers to a maximum price set by the government to prevent prices from rising above a certain level, which can result in shortages if the price is set below the equilibrium price. A surplus occurs when the quantity supplied exceeds quantity demanded at a given price, often leading to downward pressure on prices. A shortage arises when the quantity demanded exceeds quantity supplied, typically resulting in upward pressure on prices. These concepts are related to the equilibrium state but describe market situations that deviate from this balance.