Question

What is market clearing price? Explain factors affecting market clearing price.

Answer 1

A market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price. The theory claims that markets tend to move toward this price. 

A market-clearing price is the price ofa good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price. The theory claims that marketstend to move toward this price.

Answer 2

market-clearing price is the price of a good or service at which quantity supplied is equal to quantity demanded, also called the equilibrium price. ... For a one-time sale of goods, supply is fixed, so the market-clearing price is simply the price at which all items can be sold, but no lower.