Refer to the diagram below for the market for corn.The equilibrium price and quantity in this market are:

Question

Quizplus · Accepted Answer

The equilibrium price and quantity occur where the supply and demand curves intersect. In this case, it is at a price of $3 and a quantity of 8,000 bushels. This is because at a higher price, there is an excess supply (quantity supplied is greater than quantity demanded) and at a lower price, there is an excess demand (quantity demanded is greater than quantity supplied). Therefore, the correct answer is B.

Refer to the Diagram Below for the Market for Corn