The market-clearing price is:

Question

Quizplus · Accepted Answer

The market-clearing price is the price at which the market is in equilibrium, meaning that the quantity demanded by buyers is equal to the quantity supplied by sellers. At this price, there is no excess supply or demand, and there is no pressure for the price to change. This price ensures that the market operates efficiently and optimally. Choice B is incorrect because mutually beneficial trade can occur at any price as long as the buyer and seller are willing to agree. Choice C is incorrect because the maximum profit for sellers may not necessarily be at the market-clearing price. Choice D is incorrect because consumer surplus can exist even at the market-clearing price.

The Market-Clearing Price Is