Answer :
Final answer:
The correct term for equilibrium price is 'b. market-clearing price,' which is the price at which the quantity supplied equals the quantity demanded, and there is no surplus or shortage in the market.
Explanation:
The term equilibrium price is also known as the market-clearing price. It is the price at which the quantity of a product offered by producers equals the quantity of the product that consumers are willing to buy.
The word "equilibrium" means balance. In the context of a market, if it is at its equilibrium price and quantity, there would be no surplus or shortage, and the market has no reason to shift away from this point. However, if a market is not at equilibrium, economic pressures will arise that compel the market towards the equilibrium price and equilibrium quantity, stabilizing the market conditions.