Figure 10-3
-Refer to Figure 10-3. At the private market outcome, the equilibrium price will be
A) P0.
B) P1.
C) P2.
D) None of the above is correct.

Question

Figure 10-3 
-Refer to Figure 10-3. At the private market outcome, the equilibrium price will be
A) P0. 
B) P1. 
C) P2. 
D) None of the above is correct.

Quizplus · Accepted Answer

At the private market outcome, the equilibrium price will be P1, where the supply and demand curves intersect. P0 and P2 are not equilibrium prices and are either above or below the intersection of the curves.

Figure 10-3 -Refer to Figure 10-3. at the Private Market Outcome, the Market