The market clearing price refers to the:

Question

Quizplus · Accepted Answer

Market clearing price is the price where quantity demanded and quantity supplied are equal. This means that at this price, there is no excess supply or demand in the market. It is also known as the equilibrium price. Option A is incorrect because it refers to the point where quantity supplied is at its highest, which is not necessarily the equilibrium price. Option C is incorrect because it refers to the minimum price, which may not necessarily be the market clearing price. Option D is incorrect because it refers to the maximum price where all suppliers are willing to sell all their production, which may not necessarily be the market clearing price.

The Market Clearing Price Refers to The