market clearing

Definition

Equality of quantity supplied and quantity demanded. A market-clearing condition is an equation (or other representation) stating that supply equals demand. A market-clearing price is a price that causes quantities supplied and demanded to be equal.

Use market clearing in a sentence

You should try to make sure that you understand how the market clearing may affect the market in the near future.

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If you want to accurately assess how much product to make you need to figure out what the market clearing will be.

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There was a perfect equilibrium in the market so market clearing was present as demonstrated by the supply and demand graphs.

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over-valued currency market clearing price