Use the figure below to answer the following questions.

Figure 3.5.1
-If the demand curve is D₂ in Figure 3.5.1,

Question

Use the figure below to answer the following questions. Figure 3.5.1 -If the demand curve is D₂ in Figure 3.5.1,

Quizplus · Accepted Answer

The equilibrium price is the point where the demand curve intersects the supply curve (which is assumed to be constant in this figure). At that point, the quantity demanded is equal to the quantity supplied. In this case, the equilibrium price is the price level where the demand curve D₂ intersects the horizontal line representing supply (at a quantity of Q₂). The equilibrium quantity is Q₂.

Use the Figure Below to Answer the Following Questions