Final answer:
Equilibrium on a supply and demand graph is found at the point where the supply and demand curves intersect, representing the price and quantity where market forces balance each other.
Step-by-step explanation:
On a supply and demand graph, the point of equilibrium is a) the point where the two curves meet. This specific point indicates where the supply curve and the demand curve intersect on the graph. At this intersection, the equilibrium price and quantity are determined, which is where the amount that consumers wish to buy matches the amount producers desire to sell. This balance is known as the market equilibrium.
When we observe this equilibrium on a graph, both axes serve important functions: the vertical axis represents price, while the horizontal axis represents quantity. This presentation helps to visualize how changes in market dynamics, such as shifts in supply or demand, can affect prices and sales volume.
In summary, the equilibrium reflects a state of agreement in the marketplace, making it a fundamental concept in the study of economics.