The assumption of continuous market clearing means that: Aswer
A)sellers can sell all that they want at the going price.
B)buyers can buy all that they want at the going price.
C)in any given month, buyers can buy all that they want and sellers can sell all that they want at the going price.
D)at any given instant, buyers can buy all that they want and sellers can sell all that they want at the going price.

Question

Quizplus · Accepted Answer

The assumption of continuous market clearing means that at any given instant, buyers can buy all that they want and sellers can sell all that they want at the going price. This assumes that there are no barriers to trade such as regulations, taxes, or information asymmetries, and that buyers and sellers have perfect information and are rational in their decision-making.

The Assumption of Continuous Market Clearing Means That: Aswer