In economics, what is the price at which the quantity supplied equals the quantity demanded called?

The price at which the quantity supplied equals the quantity demanded is called the equilibrium price.

In the standard supply-and-demand model, buyers’ willingness to purchase and sellers’ willingness to offer meet at this price. The corresponding traded amount is the equilibrium quantity. If the price is above equilibrium, the model predicts a surplus; if it is below equilibrium, it predicts a shortage, assuming other conditions remain unchanged.

Equilibrium does not mean that every buyer and seller is satisfied or that the price is morally fair. It describes a market outcome under specified assumptions, including given preferences, technology, incomes, and regulations. Changes in any of those conditions can shift supply or demand and create a new equilibrium.

A legal price ceiling can keep a market below its equilibrium price, while a price floor can keep it above equilibrium. In either case, shortages or surpluses may result if the rule binds.