When the supply curve and demand curve for a particular good are shown together on a single graph,the point at which the two curves intersect identifies the:
A) Total profit earned by producers.
B) Total amount of labor that will be employed in that market.
C) Amount of time it takes to bring together the buyers and sellers of the good.
D) Equilibrium price of the gooD.

Question

Quizplus · Accepted Answer

The point at which the supply curve and demand curve intersect is known as the equilibrium point. This signifies the price at which the quantity supplied equals the quantity demanded, hence indicating the equilibrium price of the good. Thus, option D is the correct answer. Option A is incorrect because the intersection point does not provide any information about the total profit earned by producers. Option B is incorrect because the intersection point does not indicate the amount of labor that will be employed in the market. Option C is incorrect because the intersection point is not related to the time it takes to bring buyers and sellers together.

When the Supply Curve and Demand Curve for a Particular