Question

On the graph above, what is the equilibrium price?

a) $3
b) $2.50
C) $4
d) $1

Answer 1

$2.50

Step-by-step explanation:

Equilibrium is just a longer word for equal.

We are given a picture with two lines intersecting one another in terms of demand, surplus, and supply. To find our answer, is to simply see where the lines intersect in terms of price (x).

We see that they intersect right in between 2 and 3, which is equal to 2.50.

Therefore, $2.50 is our equilibrium price.