ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The equilibrium price is also sometimes called the market clearing price.

Detailed explanation-3: -equilibrium price the price in a market at which the quantity demanded and the quantity supplied of a good are equal to one another; this is also called the “market clearing price.”

Detailed explanation-4: -The market-clearing price is the price at which the quantity supplied equals the quantity demanded. This price is the only one that balances, or “clears, ” the market. Market competition tends to move prices toward market-clearing levels.