In the context of market equilibrium, the intersection of demand and supply determines the (one word) price for money. What is this price called?

• A. maximum
• B. average
• C. minimum
• D. equilibrium

Answer: (D)

Verified step by step guidance

1. Understand that in microeconomics, the market equilibrium is the point where the quantity demanded by consumers equals the quantity supplied by producers.
2. Recognize that the price at this intersection is special because it balances the desires of buyers and sellers, ensuring no surplus or shortage in the market.
3. Recall that this specific price is called the 'equilibrium' price, as it represents a stable state in the market.
4. Note that the other options like maximum, average, or minimum do not describe this balancing price in the context of supply and demand.
5. Therefore, the one-word term for the price determined by the intersection of demand and supply curves is 'equilibrium'.