ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -True. The equilibrium price is also sometimes called the market-clearing price, because, at this price, everyone in the market has been satisfied: Buyers have bought all they want to buy, and sellers have sold all they want to sell.

Detailed explanation-2: -The phrase “equilibrium price” is often used interchangeably with “market clearing price.” Both refer to the price at which the number of goods for sale is exactly equal to the quantity that buyers wish to purchase. In other words, it is the price at which the market is in equilibrium.

Detailed explanation-3: -Market clearing price also known as equilibrium price is the price of a commodity at which the quantity supplied is equal to the quantity demanded. It is the price at which the producers and consumers are satisfied and the market is said to be in a state of equilibrium.

Detailed explanation-4: -Explanation: Market-clearing price is defined as the price at which quantity demanded equals the quantity supplied. This price is also known as the equilibrium price.

Detailed explanation-5: -The equilibrium price is the market-clearing price, since at this price the quantity demanded equals the quantity supplied. The equilibrium in a market occurs at the point of intersection between the demand and supply curves.