Market-clearing prices scare away all consumers and businesses from the market.

Question

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Market-clearing prices refer to the equilibrium price where the quantity of goods or services supplied equals the quantity demanded. This price is typically seen as fair and efficient, and encourages both consumers and businesses to participate in the market. While some individuals may be discouraged by high prices, it does not necessarily cause all consumers and businesses to flee the market.

Market-Clearing Prices Scare Away All Consumers and Businesses from the Market