Figure 7-21

-Refer to Figure 7-21.Sellers whose costs are less than the equilibrium price are represented by which line segment?
A) AC.
B) CK.
C) BC.
D) CH.

Question

Figure 7-21
 
-Refer to Figure 7-21.Sellers whose costs are less than the equilibrium price are represented by which line segment?
A) AC. 
B) CK. 
C) BC. 
D) CH.

Quizplus · Accepted Answer

The equilibrium price is where the supply and demand curves intersect, which is point E in this case. Sellers whose costs are less than the equilibrium price are represented by the portion of the supply curve above the equilibrium point. In this case, that is line segment BC. Therefore, the correct choice is C.

Figure 7-21 -Refer to Figure 7-21.Sellers Whose Costs Are Less Than the Are