Market-clearing prices
A) are set by the visible hand of government.
B) scare away all consumers from the market.
C) scare away all businesses from the market.
D) balance the forces of competition and cooperation.
E) do all of the above.

Question

Quizplus · Accepted Answer

Market-clearing prices represent the point at which the forces of supply and demand are in balance, leading to efficient allocation of resources. This balance is achieved through competition and cooperation among market participants, without the need for government intervention. Therefore, options A, B, and C are incorrect.

Market-Clearing Prices