FIGURE 12- 3
-Refer to Figure 12- 3.If the diagram is depicting a perfectly competitive industry,the equilibrium price and quantity is
A)P2 and q1.
B)P2 and q2.
C)P1 and q1.
D)P1 and q2.
E)P3 and q1.

Question

FIGURE 12- 3 
-Refer to Figure 12- 3.If the diagram is depicting a perfectly competitive industry,the equilibrium price and quantity is
A)P2 and q1. 
B)P2 and q2. 
C)P1 and q1. 
D)P1 and q2. 
E)P3 and q1.

Quizplus · Accepted Answer

In a perfectly competitive industry, the equilibrium price is determined where the market supply and demand curves intersect. At price P2, the quantity supplied equals the quantity demanded, which is q2.