At which point is the equilibrium price located?
Understand the Problem
The question is asking for the determination of the equilibrium price in a market, which is the point where the quantity demanded equals the quantity supplied. This point is typically found on a supply and demand graph where the two curves intersect.
Answer
It is where demand and supply curves intersect.
The equilibrium price is located at the point where the demand and supply curves intersect.
Answer for screen readers
The equilibrium price is located at the point where the demand and supply curves intersect.
More Information
In economics, the equilibrium price is pivotal as it indicates the perfect balance between supply and demand in a market. Changes in supply or demand can shift this equilibrium.
Tips
A common mistake is misunderstanding which curves to use. Ensure you are intersecting the correct supply and demand curves.
Sources
- The web page with info on - Example Source - study.com
- Equilibrium, Price, and Quantity | Introduction to Business - courses.lumenlearning.com
- Market equilibrium (article) | Khan Academy - khanacademy.org
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