What does equilibrium price indicate?

Price determined by demand and supply

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Price determined by cost and profit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Price determined by cost of production

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Price determined to maximise profit

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A Price determined by demand and supply
When supply and demand are equal the market clears, the price at which this happens is known as the market clearing price or the equilibrium price.

Suggest Corrections

Similar questions

Equilibrium price may be determined by ____________.

Join BYJU'S Learning Program