Question

$Price

$0
$1
$ 2.
$ 3
$4
AAAAAAAA
Quantity Demanded
24
20
16
12
8
4
0
Quantity supplied
0
2
4
6
8
10
12
The equilibrium price is
O $1
0 $4
O $2
0 $3

Answer 1

The equilibrium price is the price at which the quantity demanded and the quantity supplied of a good or service is the same. The equilibrium price is also known as the market-clearing price.

This is the price at which free markets in competitive structures tend to go. The reason si that buyers and sellers, under such conditions, have little market power to influence price, but at the same time, act in a way that influences prices to the point that they reach the market-clearing level.