-Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A)P₁ and E.
B)P₃ and F.
C)P₁ and G.
D)P₂ and F.

Question

-Assume that the initial demand and supply curves in the above figure are DA and SA, respectively. The initial equilibrium price and quantity are
A)P₁ and E. 
B)P₃ and F. 
C)P₁ and G. 
D)P₂ and F.

Quizplus · Accepted Answer

The initial equilibrium price and quantity occur where the initial demand curve DA intersects the initial supply curve SA, which is at price P₁ and quantity E.

-Assume That the Initial Demand and Supply Curves in the Above