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Most economists see the assumption of continuous market clearing as not very realistic. However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever
Market clearing price is the price at which the quantity demanded of a product equals the quantity supplied.
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).
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
equilibrium price
Most economists see the assumption of continuous market clearing as not very realistic. However, many see the assumption of flexible prices as useful in long-run analysis, since prices are not stuck forever
Market clearing price is the price at which the quantity demanded of a product equals the quantity supplied.
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).
The price that exists when a market is clear of shortage and surplus, or is in equilibrium.
market equilibrium / market clearing price.
equilibrium price
the equilibrium price
the equilibrium price
Competition eliminates shortages and surpluses by setting a market- clearing price.
state assumption of perfect competition
The market clearing model is a model where prices adjust to equilibrating demand and supply meaning the quantity supply equals the quantity demanded. These models are useful for studying situations where prices are flexible.
True