Market clearing is an economic concept where the supply of goods matches the demand at a specific price. When a market clears, there are no excess goods left unsold, and consumers can purchase the quantity they desire without shortages. This balance helps ensure that resources are allocated efficiently. In a market that is not clearing, either surplus or shortage occurs. A surplus happens when supply exceeds demand, leading to unsold products, while a shortage occurs when demand surpasses supply, resulting in unmet consumer needs. Achieving market clearing is essential for maintaining stable prices and a healthy economy.