When the supply curve and demand curve for a particular good are shown together on a single graph,the point at which the two curves intersect identifies the:
A)Total profit earned by producers.
B)Total amount of labor that will be employed in that market.
C)Amount of time it takes to bring together the buyers and sellers of the good.
D)Equilibrium price of the good.

Question

Quizplus · Accepted Answer

The point at which the supply curve and demand curve intersect represents the equilibrium price of the good. This is the price at which the quantity demanded by consumers is equal to the quantity supplied by producers, resulting in a market balance. At any price above the equilibrium price, there will be a surplus of the good, and producers will be incentivized to lower their prices to increase sales. Similarly, at any price below the equilibrium price, there will be a shortage of the good, and consumers will be willing to pay more to secure the item, causing prices to rise. Therefore, the equilibrium price represents a stable market price that balances the needs and preferences of both buyers and sellers.

When the Supply Curve and Demand Curve for a Particular