The market clearing price of a good is
A) the price at which there is at least some of the good available for everyone.
B) the price at which there is no surplus and no shortage.
C) the price that consumers prefer.
D) the price that producers prefer.
B
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An individual's decision to supply her labor or to spend her time in leisure activity is known as the labor-leisure tradeoff
a. True b. False Indicate whether the statement is true or false
Many economists believe that
a. once a negative income tax system was in place, the United States could increase economic equality indefinitely without reducing economic efficiency. b. a negative income tax would be less efficient than the current welfare system. c. replacing the current welfare system with a negative income tax would increase both economic efficiency and economic equality. d. None of the above is correct.