market clearing price

Definition

Where buyers and sellers agree on a price to reflect supply and demand. The market clearing price represents the value associated with the sale or trade at the time it occurs.

Use this term in a sentence

You should try and set the correct market clearing price so that you are getting the most for your product.

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The market clearing price was very high and I wondered what that meant for our business and also our future.

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They had decided that the market clearing price would be $21 a share. They felt this price would meet both supply and demand.

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