Which of the quantity (Q) and price (P) combinations in the accompanying figure represents the market at competitive equilibrium?

Question

Quizplus · Accepted Answer

The competitive equilibrium occurs at the intersection of the supply and demand curves. In this case, that intersection occurs at point C, which represents a quantity of 22 units being sold at a price of $8. At this point, the quantity supplied equals the quantity demanded, and there is no excess supply or demand in the market. Therefore, (C) is the correct choice.

Which of the Quantity (Q) and Price (P) Combinations in the Accompanying