This figure reflects the market for outdoor concerts in a public park surrounded by residential neighborhoods.
Figure 10-3

-Refer to Figure 10-3.At the private market outcome,the equilibrium price will be

Question

This figure reflects the market for outdoor concerts in a public park surrounded by residential neighborhoods.
Figure 10-3
 
-Refer to Figure 10-3.At the private market outcome,the equilibrium price will be

Quizplus · Accepted Answer

At the private market outcome, the equilibrium price will be P₁, which is where the demand and supply curves intersect. This is because at P₀, there is excess demand which will lead to shortage and at P₂, there is excess supply which will lead to surplus. Thus, the equilibrium price where both buyers and sellers are satisfied is at P₁.

This Figure Reflects the Market for Outdoor Concerts in a Public