At a market clearing price
A) the quantity demanded will just equal the quantity supplied.
B) there will be an excess quantity demanded.
C) there will be a tendency for price to rise over time.
D) the demand function will shift outward.

Question

Quizplus · Accepted Answer

At a market clearing price, the quantity demanded will just equal the quantity supplied. This means that there will be no excess quantity demanded or supplied, and the market will be in equilibrium. There is no tendency for the price to rise over time or for the demand function to shift outward at this point, as the market is already balanced.

At a Market Clearing Price