ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 4, Problem 6.12P
To determine
The market
Concept Introduction
Market equilibrium- The price and output combination where the quantity demanded equals the quantity supplied is known as the market equilibrium. Graphically it is the point of interaction of the demand and supply curve.
Market clearing price- The price at the market equilibrium is known as the market clearing price as any shortage or surplus existent at other prices are cleared or eliminated at this price.
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