Graphically,what has been achieved when price of goods demanded is equal to the quantity of goods supplied?
A) Supply curve optimization
B) Potential for surplus
C) Price reductions
D) Freedom of choice opportunities
E) Equilibrium price

Question

Quizplus · Accepted Answer

When price of goods demanded is equal to the quantity of goods supplied, it means that the market is at equilibrium. This is the point where buyers and sellers agree on a price and quantity to trade. In other words, the market clears and there is no excess demand or supply. This is represented graphically by the intersection of the demand and supply curves, which indicates the equilibrium price and quantity. Therefore, the best choice is E, which represents the equilibrium price. None of the other options accurately describe what has been achieved at this point of equilibrium.

Graphically,what Has Been Achieved When Price of Goods Demanded Is