The Market Clearing Price in a Competitive Market

Multiple Choice

The market clearing price in a competitive market:

A) is one that will be established immediately when buyers and sellers come together to the market.
B) would persist if actually reached, but doesn't have much significance in real life, due to the lack of any forces tending to push the price to this level.
C) has no significance at all in real life because analysis of competitive markets takes no account of incomes, tastes, or other factors that influence demand.
D) will tend to be reached, although not necessarily immediately, because of the competitive forces set up whenever price is at any level other than equilibrium.
E) has no application except where everyone is an "economic person" (homo economicus) .