Use the following to answer questions:
Figure: Basic Supply and Demand
-(Figure: Basic Supply and Demand) In the diagram, which of the following statements is TRUE?
A) The equilibrium price is $3, and the equilibrium quantity is 60 units.
B) The equilibrium price is $4, and the equilibrium quantity is 60 units.
C) The equilibrium price is $2, and the equilibrium quantity is 40 units.
D) The equilibrium price is $3, and the equilibrium quantity is 50 units.

Question

Use the following to answer questions:
Figure: Basic Supply and Demand 
-(Figure: Basic Supply and Demand) In the diagram, which of the following statements is TRUE?
A) The equilibrium price is $3, and the equilibrium quantity is 60 units. 
B) The equilibrium price is $4, and the equilibrium quantity is 60 units. 
C) The equilibrium price is $2, and the equilibrium quantity is 40 units. 
D) The equilibrium price is $3, and the equilibrium quantity is 50 units.

Quizplus · Accepted Answer

The equilibrium point is where the demand and supply curves intersect. In this diagram, that point is at a price of $3 and a quantity of 50 units, so the correct answer is D.

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