What is the correct answer?


A market-clearing price:

A. Is a disequilibrium price

B. Is an equilibrium price

C. Means a shortage exists as a market is cleared

D. Must be set by the government

Correct Answer :

B. Is an equilibrium price

A market-clearing price is the price of goods or a service at which quantity supplied is equal to quantity demanded. It is also called equilibrium price.}

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