The new classical assumption of continuous market clearing implies that _____.

a. supply is constrained by demand in all markets

b. there are never any unexploited opportunities to increase profits or utility

c. both the producer and consumer surplus are minimized

d. voluntary unemployment can never occur

e. all of the above

The new classical assumption of continuous market clearing implies that the supply of goods and services in the market is constrained by demand. The demand is what drives the supply in that when the demand is high; the supply will be high too as the producers fight to satisfy or rather serve the wants of the consumers in the market. In a continuous market, the assumption is that the prices will move in the direction that the market moves in until it gets to an equilibrium point where it matches the demand.

The correct answer is A.