The equilibrium price clears the market; it is the price at which___________
ECONOMICS
JAMB 2017
The equilibrium price clears the market; it is the price at which___________
- A. Everything is sold
- B. Buyers spend all their money
- C. Excess demand is zero
- D. None of the above
Correct Answer: C. Excess demand is zero
Explanation
Equilibrium price is the price where the demand for a product or a service is equal to the supply of the product or service. At equilibrium, both consumers and producers are satisfied, thereby keeping the price of the product or the service stable.
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