Market Equilibrium Price

Home » CMA Glossary Term » Accounting Concepts and Principles » Market Equilibrium Price

Market Equilibrium Price, often referred to as the equilibrium price definition, is the price point at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers. This balance ensures that there is neither a surplus nor a shortage in the market. The equilibrium price is a fundamental concept in economics and is crucial for understanding market dynamics and pricing strategies.

CMA Exam Academy 16-Week Accelerator Program