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The equilibrium price clears the market; it is the price at which___________

The equilibrium price clears the market; it is the price at which___________
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  • A Everything is sold
  • B Buyers spend all their money
  • C Excess demand is zero
  • D None of the above
Correct Answer: Option C
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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