Another term for equilibrium price is a. dynamic price. b. market-clearing price. c. quantity-defining price. d. balance price.

Question

Landyn

Chemistry

8 April, 05:03

Another term for equilibrium price is a. dynamic price. b. market-clearing price. c. quantity-defining price. d. balance price.

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Answers (1)

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Jaelyn Williams · Answer 1

Option B is correct.

Another name for equilibrium price is * *market-clearing price**

Explanation:

Equilibrium price is defined as the price at which the quantity of products/goods/services demanded is equal to/matches the quantity of products/goods/services supplied.

The equilibrium price is also called the market clearing price because, at this price, there is no supply leftover (surplus) or demand leftover (deficit). The market is literally cleared!