In a competitive market the equilibrium price and quantity occur where:

Question

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In a competitive market, the equilibrium price and quantity occur where the downsloping demand curve intersects the upsloping supply curve. This is because at this point, the quantity demanded by consumers is equal to the quantity supplied by producers, and there is no excess demand or supply in the market. Any other point on the supply or demand curve would result in either a shortage or a surplus.

In a Competitive Market the Equilibrium Price and Quantity Occur