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) $P_{4}, Q_{C}$
(E) 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) $P_{4}, Q_{C}$
(E) Point $X$

Accepted Answer

∻Solution∻ ‖ a ⋮ Equilibrium Point: The equilibrium price and quantity in a market are determined at the point where the demand curve (D) intersects the supply curve (S). This point is labeled as X on the graph. ‖ ‖ b ⋮ Identifying Equilibrium: From the graph, the intersection point X represents the equilibrium price and quantity. Therefore, the correct answer is the one that identifies point X. ‖ ∻Answer∻ ⚹ Point X ⚹ ∻Key Concept∻ ⚹ Equilibrium Point ⚹ ∻Explanation∻ ⚹ The equilibrium price and quantity are found at the intersection of the demand and supply curves, which is labeled as point X on the graph. ⚹◊What impact would an increase in the demand for Good Y have on the equilibrium price and quantity in the market?⍭ Generate me a similar question◊

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