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Question

The equilibrium price clears the market: It is the price at which ________.
  1. excess demand is zero
  2. everything is sold
  3. quantity demanded equals quantity supplied
  4. B and C

A
B and C
B
quantity demanded equals quantity supplied
C
everything is sold
D
excess demand is zero
Solution
Verified by Toppr

1:A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price
2:The equilibrium price clears the market: It is the price at which quantity demanded equals quantity supplied with excess demand is zero.

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