A market-clearing curve for a good
A) Shows the quantities supplied and demanded for a particular product
B) Shows the combinations of prices, both for that good and for other related goods, that bring supply and demand for the good into balance
C) Shows the quantities supplied and demanded for all goods
D) Illustrates equilibrium in a particular market

Question

Quizplus · Accepted Answer

A market-clearing curve for a good, also known as a demand and supply diagram, shows the combinations of prices that bring demand and supply for the good into balance. It illustrates the equilibrium point where the quantity demanded equals the quantity supplied. It does not show the quantities supplied and demanded for all goods, only for a particular good.

A Market-Clearing Curve for a Good