ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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at the highest point on the demand curve.
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where the demand and supply curves intersect.
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at the lowest point of the supply curve.
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at the center point of the graph, irrespective of the curves.
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Detailed explanation-1: -The equilibrium price and equilibrium quantity occur where the supply and demand curves cross. The equilibrium occurs where the quantity demanded is equal to the quantity supplied. If the price is below the equilibrium level, then the quantity demanded will exceed the quantity supplied.
Detailed explanation-2: -Equilibrium is the point where demand for a product equals the quantity supplied. This means that there’s no surplus and no shortage of goods. A shortage occurs when demand exceeds supply – in other words, when the price is too low.
Detailed explanation-3: -Supply and demand curves intersect at the equilibrium price. This is the price at which we would predict the market will operate.
Detailed explanation-4: -An equilibrium price is a balance of demand and supply factors. There is a tendency for prices to return to this equilibrium unless some characteristics of demand or supply change. Changes in the equilibrium price occur when either demand or supply, or both, shift or move.
Detailed explanation-5: -An equilibrium exists in a market when there is no pressure for the market price to change.