Question: Explain why the equilibrium price is often called the market-clearing price.

Explain why the equilibrium price is often called the market-clearing price.

Step by Step Solution

★★★★★

3.36 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The equilibrium price is often called the market clearing price because i... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

683-B-E-M-E (3568).docx

120 KBs Word File

Students Have Also Explored These Related Economics Questions!

Q:

1. Draw the Supply Curves. The following table shows short-run marginal costs for a perfectly competitive firm: a. Use this information to draw the firms marginal cost curve. b. Suppose the shut-down...

Q:

Suppose the government issues a fixed quantity, Q*, of tradable pollution permits, each one permitting the emission of one tonne of sulphur dioxide. Use the accompanying figure to help answer the...

Q:

The Thai government actively intervenes in markets (Limsamarnphun, Nophakhun, "Govt Imposes Price Controls in Response to Complaints," The Nation, May 12, 2012). a. The government increased the daily...

Q:

Part 3: Diagram Problem (10 marks) 3 Using diagrams and short answers, answer the following questions: a. Over what range of prices does a shortage arise? b. What happens to the price when a shortage...

Q:

Micro Topic 2.7 Market Disequilibrium Part 1 - Check Your Understanding- The demand and supply schedules for backpacks are given below. Graph the information in the table and answer the questions....

Q:

Explain why the equilibrium price is often called the market-clearing price.

Q:

Q27 27. is the price at which the quantity of a good or service demanded is the same as the quantity ofthat good or service supplied: also referred to as the equilibrium price. Select one: 0 a....

Q:

Can you please summarize the article in the images in four paragraphs by answering all of the questions below to help me in understanding: 1.) What is 'Inflation'? 2.) What are the 'Causes' of...

Q:

Q1 use the suggested solution. M Assuming you are a junior business consultant of "759 Store". Your boss asks you to prepare a simple demand and supply analysis about the business of snack shops run...

Q:

Year 1 econ question M Assuming you are a junior business consultant of "759 Store". Your boss asks you to prepare a simple demand and supply analysis about the business of snack shops run by 759...

Q:

PARC Company has money to invest in an employee benefit plan, and you have been chosen as the plan's trustee. As an employee yourself, you want to maximize the interest earned on this investment and...

Q:

Peter, Mara, and Vanessa are partners in the Image Gallery. As of November 30, 2011, the balance in Peters Capital account was $50,000, the balance in Maras was $60,000, and the balance in Vanessas...

Q:

What are segment profiles, and what are the requirements for effective segmentation?

Q:

E8-1 Identifying Internal Control Principles At most movie theaters, one employee sells tickets and another employee collects them. One night when you are at the movies, your friend comments that...

Q:

1. Your savings account pays 4 percent per year: Each $100 in the bank grows to $104 over a one-year period. If prices increase by 3 percent per year, by keeping $100 in the bank for a year you...

Q:

1. Your savings account pays 4 percent per year: Each $100 in the bank grows to $104 over a one-year period. If prices increase by 3 percent per year, by keeping $100 in the bank for a year you...

Q:

1. Your savings account pays 4 percent per year: Each $100 in the bank grows to $104 over a one-year period. If prices increase by 3 percent per year, by keeping $100 in the bank for a year you...

Q:

WACC Estimation The table below gives the balance sheet for Travelers Inn Inc. (TII), a company that was formed by merging a number of regional motel chains. Travelers Inn: December 31, 2015...

Q:

eBook\ Required Rate of Return\ Suppose rRF^()==5%,MM_(M)=10% , and rA^(2)=8% .\ a. Calculate Stock A's beta. Round your answer to one decimal place.\ b. If Stock A's beta were 1.2 , then what would...

Q:

iii Question 3 of 7 View Policies Current Attempt in Progress Which of the following statements is true with respect to intangible assets with indefinite Ilves? They should be amortized over a period...