What term is used for determining market value through the interaction of supply and demand?

The term that refers to determining market value through the interaction of supply and demand is price. In a market economy, prices are established based on how much consumers are willing to pay for a good or service (demand) compared to how much producers are willing to sell it for (supply).

When demand for a product increases while supply remains constant, prices tend to rise because consumers compete to purchase the limited goods available. Conversely, if supply increases and demand decreases, prices usually fall. This continuous dynamic interaction between supply and demand shapes the market value of goods and services, as prices adjust to reflect the current market conditions.

Other terms like market regulation, value assessment, and resource pricing do not specifically address the direct relationship and interaction between supply and demand that fundamentally determines the price in a marketplace. Price is the clearest concept directly tied to this interaction, making it the most appropriate choice.