At a Market Clearing Price

question 126

Multiple Choice

At a market clearing price

• A) the quantity demanded will just equal the quantity supplied.
• B) there will be an excess quantity demanded.
• C) there will be a tendency for price to rise over time.
• D) the demand function will shift outward.

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Definitions:

Weighted Average

An average in which each quantity to be averaged is assigned a weight, reflecting its importance or frequency relative to other quantities.

Market Value

The transaction value at which a service or asset is currently listed in the market.

Corporate Tax Rate

The portion of a company's earnings that is handed over to the government in the form of taxes.