A market is said to "clear" when
A)sellers give up selling their goods because they can't find any buyers.
B)buyers and sellers are able to buy and sell as much as they want at the market price.
C)the government decides to shut it down.
D)sellers run out of goods to sell.

Question

Quizplus · Accepted Answer

When a market clears, it means that the supply and demand have reached a point where the quantity of goods that buyers want to buy equals the quantity that sellers want to sell. In other words, there is no excess supply or excess demand, and buyers and sellers are able to buy and sell as much as they want at the market price. Therefore, option B is the right choice.

A Market Is Said to "Clear" When