In retail stores, when a business ends up with too much of a certain product, which remains unsold at its longstanding price (such as unsold summer clothing as the colder season approaches), the store will typically discount the price until the excess stock is sold, a simple example of "market clearing."
In economics, market clearing is the process by which, in an economic market, the supply of whatever is traded is equated to the demand so that there is no excess supply or demand, ensuring that there is neither a surplus nor a shortage. The new classical economics assumes that in any given market, assuming that all buyers and sellers have access to information and that there is no "friction" impeding price changes, prices constantly adjust up or down to ensure market clearing.[1]
In economics, marketclearing is the process by which, in an economic market, the supply of whatever is traded is equated to the demand so that there is...
the system. Unlike many other markets it is a hybrid system based partly on fixed costs and partly on marketclearing price. Many say[weasel words] it...
Exchanges and Clearing Limited (HKEX; Chinese: 香港交易及結算所有限公司) operates a range of equity, commodity, fixed income and currency markets through its wholly...
Look up clearing in Wiktionary, the free dictionary. Clearing or The Clearing may refer to: Clearing (Fred Frith album), 2001 Clearing (Hyd album), 2022...
or marketclearing price and will tend not to change unless demand or supply changes, and quantity is called the "competitive quantity" or market clearing...
hypothesis argues that wages, at least in some labour markets, form in a way that is not market-clearing.[citation needed] Specifically, it points to the incentive...
Financial market infrastructure refers to systems and entities involved in clearing, settlement, and the recording of payments, securities, derivatives...
A central clearing counterparty (CCP), also referred to as a central counterparty, is a financial market infrastructure organization that takes on counterparty...
Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central...
or marketclearing price and will tend not to change unless demand or supply changes, and the quantity is called the "competitive quantity" or market clearing...
an over-the-counter market where brokers/dealers negotiate directly with one another, so there is no central exchange or clearing house. The biggest geographic...
market-clearing wage, resulting in unemployment for low-skilled workers. Meanwhile, the prevailing wage for high-skilled workers is below the market-clearing...
number of derivatives are traded via clearing houses some with central counterparty clearing, which provide clearing and settlement services on a futures...
Russian financial markets regulator Andrey Golikov, board member at National Clearing Centre Maria Gordon, a former emerging markets portfolio manager...
market-clearing allocation corresponds to solution of a simple knapsack problem, and does not require much computation. By contrast, a smart market allows...
where the quantity demanded will equal the quantity supplied (the market-clearing price), resulting in an economic equilibrium for price and quantity...
real-wage unemployment, occurs when real wages for a job are set above the market-clearing level, causing the number of job-seekers to exceed the number of vacancies...
would equilibrate supply and demand (such as a minimum wage above the market-clearing wage). Structural unemployment is also involuntary. Economists have...
markets); marketclearing then requires that the entire sequence of prices clears all markets at all times. A generalization of the sequential market...
In neoclassical economics, a market distortion is any event in which a market reaches a marketclearing price for an item that is substantially different...
model. For example, the IS model of only the goods market: pp. 250–260 derives the market-clearing (and thus endogenous) level of output depending on...
changing prices makes it less likely that firm will cut prices to a marketclearing level. Even if prices are perfectly flexible, imperfect competition...
prices are called market-clearing prices. The main challenge in analyzing Fisher markets is finding a CE.: 103–105 In the Fisher market model, the budget...
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