The following figure illustrates the demand and supply curves for a good.

-Refer to the figure above.What is the equilibrium price and quantity of the good?
A) Equilibrium price is $40, equilibrium quantity is 20 units.
B) Equilibrium price is $60, equilibrium quantity is 10 units.
C) Equilibrium price is $60, equilibrium quantity is 20 units.
D) Equilibrium price os $80, equilibrium quantity is 30 units.

Question

The following figure illustrates the demand and supply curves for a good.
 
-Refer to the figure above.What is the equilibrium price and quantity of the good?
A) Equilibrium price is $40, equilibrium quantity is 20 units. 
B) Equilibrium price is $60, equilibrium quantity is 10 units. 
C) Equilibrium price is $60, equilibrium quantity is 20 units. 
D) Equilibrium price os $80, equilibrium quantity is 30 units.

Quizplus · Accepted Answer

The equilibrium price is found at the point where the demand and supply curves intersect. In this case, the intersection occurs at a price of $60 and a quantity of 20 units. Therefore, option C is correct. Option A and D are both incorrect as they do not lie on the intersection of the two curves. Option B is incorrect as it has the wrong quantity value.

The Following Figure Illustrates the Demand and Supply Curves for a Good