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The equilibrium price clears the market; it is the price ...

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

A.

Everything is sold

B.

Buyers spend all their money

C.

Excess demand is zero

D.

None of the above

Correct answer is C

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.