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The equilibrium price clears the market; it is the price at which___________


Question

The equilibrium price clears the market; it is the price at which___________

Options

A)
Everything is sold
B)
Buyers spend all their money
C)
Excess demand is zero
D)
None of the above

The correct answer is C.

Explanation:

Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.

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Dicussion (1)

  • Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.

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