In a given market,how are the equilibrium price and the market-clearing price related?
A)There is no relationship.
B)They are the same price.
C)The market-clearing price exceeds the equilibrium price.
D)The equilibrium price exceeds the market-clearing price.

Question

Quizplus · Accepted Answer

Equilibrium price is the price at which the quantity demanded of a good or service equals the quantity supplied, resulting in no excess supply or demand. The market-clearing price is the price at which all units of a good or service are sold in a given market, with no excess supply or demand. Since both of these prices occur when supply and demand are in balance, they are the same price. Therefore, option B is the correct answer.

In a Given Market,how Are the Equilibrium Price and the Market-Clearing