Question

Why is "equilibrium" also sometimes called "market clearing price"? Group of answer choices

Answer 1

Answer: B.At equilibrium, quantity supplied and quantity demanded are equal ensuring that at that price consumers will not want more and producers will not supply more.

Explanation:

The point where the market demand and marker supply curves intersect is known as the equilibrium point. The price at which equilibrium occurs is the market clearing price.

It is called the market clearing price because at that price both producers and customers are in equilibrium. Above the equilibrium price, there's is excess supply and below the equilibrium price, there's excess demand.