Question

What does equilibrium price indicate?

A

Price determined by demand and supply

B

Price determined by cost and profit

C

Price determined by cost of production

D

Price determined to maximise profit

Medium
Updated on : 2022-09-05
Solution
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Correct option is A)

When supply and demand are equal the market clears, the price at which this happens is known as the market clearing price or the equilibrium price. 

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