-Assume that the initial demand and supply curves in the above figure are D_A and S_A, respectively. The initial equilibrium price and quantity are

Name: -Assume that the initial demand and supply curves in the above figure are D A and S A, respectively. The initial equilibrium price and quantity are A) P 1 and E. B) P 3 and F. C) P 1 and G. D) P 2 and F.
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

-Assume that the initial demand and supply curves in the above figure are D<sub>A</sub> and S<sub>A,</sub> respectively. The initial equilibrium price and quantity are A) P<sub>1</sub> and E. B) P<sub>3</sub> and F. C) P<sub>1</sub> and G. D) P<sub>2</sub> and F.

Quizplus · Accepted Answer

The initial equilibrium price and quantity occur where the initial demand curve D_A intersects the initial supply curve S_A, which is at point E with price P₁.

-Assume That the Initial Demand and Supply Curves in the Above