-Refer to the above graph to answer this question.Suppose that the graph represents a perfectly competitive market.What will be the equilibrium price and quantity?
A)$10 and 50.
B)$12 and 40.
C)$12 and 100.
D)$14 and 30.
E)Cannot be determined.

Question

-Refer to the above graph to answer this question.Suppose that the graph represents a perfectly competitive market.What will be the equilibrium price and quantity?
A)$10 and 50. 
B)$12 and 40. 
C)$12 and 100. 
D)$14 and 30. 
E)Cannot be determined.

Quizplus · Accepted Answer

In a perfectly competitive market, the equilibrium price and quantity are determined at the point where the supply curve intersects the demand curve. Choice B ($12 and 40) correctly identifies this intersection point, assuming the graph shows the supply and demand curves intersecting at these values.

-Refer to the Above Graph to Answer This Question