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

Quizplus · Accepted Answer

In a perfectly competitive industry, the equilibrium price and quantity occur where the market supply and demand curves intersect. This is typically represented by P2 and q2 in such diagrams.

FIGURE 12-3 -Refer to Figure 12-3. If the Diagram Is Depicting a Depicting