What Is Market Clearing?

The market clearing price refers to the price at which the market price of a particular product is in equilibrium.

Market clearing price

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The market clearing price refers to the price at which the market price of a particular product is in equilibrium.
When the number of consumers willing to buy the product at market mainstream prices is equal to the number of producers willing to sell the product, the market price of a particular product is in equilibrium. The equilibrium price at this time is the so-called market clearing price.

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