ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The equilibrium price is the only price where the plans of consumers and the plans of producers agree-that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity.

Detailed explanation-2: -The market price is the current price at which a good or service can be purchased or sold. The market price of an asset or service is determined by the forces of supply and demand; the price at which quantity supplied equals quantity demanded is the market price.

Detailed explanation-3: -In economics, quantity supplied describes the number of goods or services that suppliers will produce and sell at a given market 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.

Detailed explanation-5: -An equilibrium price, also known as a market-clearing price, is the consumer cost assigned to some product or service such that supply and demand are equal, or close to equal. The manufacturer or vendor can sell all the units they want to move and the customer can access all the units they want to buy.