ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Above the equilibrium price.
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Below the equilibrium price.
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Either A or B
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None of the above
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Detailed explanation-1: -The point where the demand and supply meet is the equilibrium price. The area above the supply level and below the equilibrium price is called product surplus (PS), and the area below the demand level and above the equilibrium price is the consumer surplus (CS).
Detailed explanation-2: -Equilibrium: Where Supply and Demand Intersect On a graph, the point where the supply curve (S) and the demand curve (D) intersect is the equilibrium.
Detailed explanation-3: -On a graph, the intersection of the demand and supply curves represents the equilibrium price.
Detailed explanation-4: -The total economic surplus is represented on a graph by the intersection of the supply and demand curve. Quantity is represented on the x-axis, and price on the y-axis. The demand curve slopes down from a higher price to a lower quantity. The supply curve ascends from low price to high quantity.