What term defines the price at which buyers and sellers agree?

• A. Equilibrium
• B. Risk
• C. Risk management
• D. Trademarks

Answer: (A)

The price at which buyers and sellers agree is the equilibrium price, also called the market-clearing price. It’s the point where quantity demanded by consumers equals quantity supplied by producers, so the market is balanced. If the price sits above this level, a surplus occurs because more is produced than people want to buy. If it’s below, a shortage happens because demand exceeds supply. Markets naturally move toward this point as prices adjust in response to excess supply or demand. The other terms don’t describe this concept: risk is about uncertainty, risk management is about handling that uncertainty, and trademarks are brand identifiers.