What is the common economic term for the market equilibrium?

The term "market equilibrium" describes a situation where the quantity of goods supplied is equal to the quantity of goods demanded at a particular price level. This balance ensures that there is no surplus or shortage in the market, making it stable. When the market is at equilibrium, it is efficient, as resources are allocated optimally and there are no incentives for price changes, allowing both consumers and producers to make decisions with certainty.

In economic theory, market equilibrium is a fundamental concept that helps in understanding how market forces coordinate to determine prices and quantities in an efficient manner. It also serves as a benchmark for analyzing the effects of various economic policies or external changes, such as taxes, subsidies, or shifts in consumer preferences.

The other options refer to different concepts. A price floor sets a minimum price for a good or service, while a price ceiling establishes a maximum price. Market balance may seem intuitive, but it is not the standard term used in economics. Thus, "market equilibrium" is the most accurate and commonly used term in economic discussions.