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choke price

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Financial Dictionary

Choke Price

An economic term used to describe the price at which the quantity demanded of a good is equal to zero.

Investopedia Commentary

This is the price at which all demand is choked off. At any price below the choke, a good is demanded. At any price equal to or above the choke price, no goods are demanded. Typically, these prices are associated with natural resources.

Related Links

Economics Basics Tutorial

See also: Demand, Economics, Equilibrium

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