Graph 7-4
-In Graph 7-4, the equilibrium (market-clearing) price is:
A)P₁
B)P₂
C)P₃
D)P₄

Name: Graph 7-4 -In Graph 7-4, the equilibrium (market-clearing) price is: A)P₁ B)P₂ C)P₃ D)P₄
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Question

Graph 7-4 
-In Graph 7-4, the equilibrium (market-clearing) price is:
A)P₁ 
B)P₂ 
C)P₃ 
D)P₄

Quizplus · Accepted Answer

The equilibrium (market-clearing) price is where the demand and supply curves intersect. In Graph 7-4, this occurs at point P₂, where the quantity demanded and quantity supplied are both equal to 10. Thus, the correct answer is B).

Graph 7-4 -In Graph 7-4, the Equilibrium (Market-Clearing) Price Is