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

The term "price" encompasses the outcome of the interactions between supply and demand in a market. It is the monetary figure assigned to a good or service based on the willingness of consumers to pay and the availability as determined by producers. When supply increases or demand decreases, prices typically fall, reflecting the decreasing value placed on those goods or services. Conversely, if demand rises or supply decreases, prices usually rise, indicating a higher value perceived by consumers.

This dynamic mechanism of price determination ensures that resources are allocated efficiently in the market. It reflects the collective preferences and behaviors of both buyers and sellers, playing a crucial role in signaling where resources should be directed to meet consumer needs. Therefore, "price" is the appropriate term to describe this fundamental economic concept of value determination through the interactions of supply and demand.