-Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A) P1 and E.
B) P3 and F.
C) P1 and G.
D) P2 and F.

Question

-Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A) P1 and E. 
B) P3 and F. 
C) P1 and G. 
D) P2 and F.

Quizplus · Accepted Answer

The initial equilibrium is determined by the intersection of the initial demand curve (DA) and the initial supply curve (SA), which is at point E, corresponding to price P1.

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