The equilibrium price in a market is found where
A)The market supply curve intersects the market demand curve.
B)The market supply curve intersects the y-axis.
C)The market demand curve intersects the y-axis.
D)The market supply curve intersects the x-axis.

Question

Quizplus · Accepted Answer

The equilibrium price is the price at which the quantity that buyers are willing to buy matches the quantity that sellers are willing to sell. This can be illustrated graphically as the point where the market supply curve intersects the market demand curve. Therefore, the correct choice is A. The y and x-axis do not provide information about the equilibrium price.

The Equilibrium Price in a Market Is Found Where