Explain Why the Equilibrium Price Is Called the Market Clearing

question 140

Essay

Explain why the equilibrium price is called the market clearing price.

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Definitions:

Data Distribution

The way in which data points are spread or dispersed across values in a dataset.

Skewness

A measure of the asymmetry of the probability distribution of a real-valued random variable; indicates how the tail on one side of the distribution compares to the tail on the other side.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how much the values deviate from the mean.

Dispersed

Spread out over a wide area; not concentrated in one place.