In a competitive market, what is the price where quantity supplied equals quantity demanded?

In a competitive market, the price where quantity supplied equals quantity demanded is the equilibrium price.

At this price, buyers want to purchase exactly the amount sellers want to sell, so the market has neither a shortage nor a surplus based on the model. The corresponding quantity is called the equilibrium quantity. A standard supply-and-demand graph identifies the equilibrium at the intersection of the two curves.

If the market price is above equilibrium, sellers generally offer more than buyers want, creating a surplus. Competitive pressure can push the price downward. If the price is below equilibrium, buyers want more than sellers offer, creating a shortage and pressure for prices to rise.

Equilibrium does not mean that every individual consumer or producer is satisfied. It describes a balance in the market as a whole. Real markets can take time to adjust, and taxes, regulations, market power, information problems, and changing expectations can prevent an immediate move to the textbook equilibrium.