Exhibit 3-10
Refer to Exhibit 3-10. A price of $20 is
A)the equilibrium price of good X.
B)a price at which there is a surplus of good X.
C)a price at which there is a shortage of good X.
D)not a possible price for good X.

Question

Exhibit 3-10 
Refer to Exhibit 3-10. A price of $20 is
A)the equilibrium price of good X. 
B)a price at which there is a surplus of good X. 
C)a price at which there is a shortage of good X. 
D)not a possible price for good X.

Quizplus · Accepted Answer

The point where the demand curve and the supply curve intersect is the equilibrium point, where the quantity demanded and the quantity supplied are equal. At this point, the price is $20, which makes it the equilibrium price of good X. It is the price at which the market clears, which means there is no surplus or shortage of the good.

Exhibit 3-10 Refer to Exhibit 3-10. a Price of $20 Is