-In a free market economy, the market clearing (equilibrium)price in the above table would adjust to
A)$1.
B)$3.
C)$4.
D)$5.

Question

-In a free market economy, the market clearing (equilibrium)price in the above table would adjust to
A)$1. 
B)$3. 
C)$4. 
D)$5.

Quizplus · Accepted Answer

The market clearing price is the price at which the quantity supplied equals the quantity demanded. In the table, the quantity supplied is 2 at a price of $3, and the quantity demanded is 2 at a price of $3. Therefore, the market clearing price is $3.

-In a Free Market Economy, the Market Clearing (Equilibrium)price in the Above