What economic concept describes a market where prices adjust based on supply and demand?

The concept that describes a market where prices adjust based on supply and demand is market equilibrium. In a market, the interaction between supply (the quantity of a good or service that producers are willing to sell at different prices) and demand (the quantity that consumers are willing to buy at different prices) determines the market price. When supply equals demand, the market reaches equilibrium. At this point, there is no excess supply or demand, and prices stabilize. If demand increases, prices tend to rise until a new equilibrium is established; conversely, if supply increases and outpaces demand, prices may fall. Thus, market equilibrium is fundamentally about how the forces of supply and demand interact to determine price levels in a competitive market economy.

The other options pertain to different concepts: monopoly describes a market structure where a single seller dominates, fiscal policy involves government spending and taxation decisions, and supply chain management refers to the oversight of the flow of goods from production to consumption. None of these concepts directly address the mechanism of price adjustment based on supply and demand in the same way that market equilibrium does.