Question

The equilibrium price is located at which of the following points?

A. the intersection of supply and demand curves
B. the supply curve’s lowest point
C. the demand curve’s peak
D. where the production possibilities frontier is furthest to the right

Answer 1

Answer: A

Explanation

Answer 2

It is letter A. The intersection of the supply and demand curves. This is where the equilibrium price can be located but the these curves are said to be in different direction,since supply and demand inversely proportional to each other. The equilibrium price too, is where the intention of buyers and sellers meet.