Question

Where is market equilibrium located

on a supply and demand curve?
A. at the origin of supply and demand
B. at the intersection of supply and demand
C. at the highest points of supply and demand

Answer 1

B. at the intersection of supply and demand

Step-by-step explanation:

Equilibrium is a market condition where there no excess or shortage in demand and supply. It is when the quantity demanded matches the quantity supplied. At equilibrium, buyers and sellers are happy with the prevailing prices.

In a graph showing the demand and supply curve, the equilibrium point is the intersection of the supply and demand curve.