The equilibrium price in a market corresponds to the point where the ________.

Question

Quizplus · Accepted Answer

The equilibrium price is the point where the market demand and market supply curves intersect. This is the point where the quantity demanded by consumers is equal to the quantity supplied by producers, resulting in a stable market price. The intersection of a firm's average cost curve and the market supply curve may determine the quantity of output supplied by that firm, but it does not necessarily correspond to the equilibrium price in the market as a whole. Similarly, the intersection of a firm's revenue curve and the market supply curve may determine the level of output that maximizes the firm's profit, but it does not necessarily correspond to the equilibrium price in the market.

The Equilibrium Price in a Market Corresponds to the Point