Question

What does "Q” represent on the graph?

A. the point where equilibrium is achieved
B. the quantity at the equilibrium point
C. the average cost of goods sold
D. the point where supply and demand drop

Answer 1

its b. the quantity at the equilibrium point.

Answer 2

The correct answer is B.

The equilibrium point, the point where the supply and demand functions intersect, is constituted by two coordinates (the P price in the y axis, and the Q quantity in the x axis).

At the equilibrium point, the quantity that consumers are willing to purchase of a certain good at the P price (quantity demanded) equals the amount that producers are willing to offer at this P price (quantity supplied). In the equilibrium point, the market clears (Q = quantity supplied = quantity demanded) which means that the whole output that has been produced is also sold.