GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The point at which supply and demand cross.
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inflation point
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supply point
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market price
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crosspoint
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Explanation:
Detailed explanation-1: -The point at which the two curves intersect represents the market-clearing price-the price at which demand and supply are the same. Prices can change for many reasons (technology, consumer preference, weather conditions).
Detailed explanation-2: -Supply and demand curves intersect at the equilibrium price. This is the price at which we would predict the market will operate.
Detailed explanation-3: -Equilibrium price. When a product exchange occurs, the agreed upon price is called an equilibrium price, or a market clearing price. Graphically, this price occurs at the intersection of demand and supply as presented in Image 1.
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