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The market clearing price is the price at which the quantity of a good or service supplied equals the quantity demanded, resulting in no surplus or shortage. It effectively balances the interests of buyers and sellers in a competitive market. This price adjusts through the forces of supply and demand, ensuring that all goods produced are sold. When the market is in equilibrium, resources are allocated efficiently.

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2mo ago

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Related Questions

What is market clearing price?

Market clearing price is the price at which the quantity demanded of a product equals the quantity supplied.


What is a market clearing price?

A market clearing price is the price at which demand equals supply, so that the market "clears" (i.e., all of the goods supplied find a buyer).


Market clearing price?

The price that exists when a market is clear of shortage and surplus, or is in equilibrium.


What is another word for market clearing price?

Another word for market clearing price is "equilibrium price." This term refers to the price at which the quantity of goods supplied equals the quantity demanded, resulting in a balanced market with no surplus or shortage.


Which of the following is another term for market clearing price?

equilibrium price


The market clearing price is most closely associated with?

the equilibrium price


What is the market clearing price most closely associated with?

the equilibrium price


The market price of a corporation increase or decrease until a stable price is reached what is this price also called?

market clearing price (aplus)


The market price of corporate shares will increase or decrease until a stable price is reached what is this price called?

market clearing price (aplus)


The market price of corporate shares will increase or decrease until a stable price is reached. What is this price also called?

market clearing price (aplus)


The equilibrium price is also called market clearing price. True or False?

True


The equilibrium price or market clearing price is the price where the intentions of buyers and sellers match. True or False?

True