This graph shows the market for Good $Y$.

Which of the following correctly identifies the equilibrium price and quantity of good $Y$ ?

Choose 1 answer:
(A) $P_{3}, Q_{A}$
(B) $P_{4}, Q_{B}$
(c) $P_{5}, Q_{C}$
(D) $P_{4}, Q_{C}$
() Point $X$

Question

This graph shows the market for Good $Y$.

Which of the following correctly identifies the equilibrium price and quantity of good $Y$ ?

Choose 1 answer:
(A) $P_{3}, Q_{A}$
(B) $P_{4}, Q_{B}$
(c) $P_{5}, Q_{C}$
(D) $P_{4}, Q_{C}$
() Point $X$

Accepted Answer

Sure, let's analyze the given graph and determine the equilibrium price and quantity for Good $Y$. ∻Solution∻ ‖ a ⋮ Identify Equilibrium: The equilibrium price and quantity occur at the intersection of the supply (S) and demand (D) curves. This point is labeled as "X" on the graph. ‖ ‖ b ⋮ Determine Coordinates: From the graph, the intersection point "X" corresponds to the price level $P_4$ and the quantity level $Q_C$. ‖ ∻Answer∻ ⚹ (D) $P_{4}, Q_{C}$ ⚹ ∻Key Concept∻ ⚹ Equilibrium in a market occurs where the supply and demand curves intersect. ⚹ ∻Explanation∻ ⚹ The equilibrium price and quantity are determined by the intersection of the supply and demand curves. In this case, the intersection point "X" on the graph corresponds to the price $P_4$ and the quantity $Q_C$. ⚹◊What factors could cause a shift in the demand or supply curve for Good Y in the market?⍭ Generate me a similar question◊

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