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Chapter 3: Q 17. (page 78)

How can you locate the equilibrium point on a demand and supply graph?

Short Answer

Expert verified

On a demand and supply graph, the equilibrium point can be found where the demand and supply curves intersect

Step by step solution

01

Step 1. Define equilibrium point.

The point of intersection of the demand curve and the supply curve for a commodity is known as the equilibrium point.

02

Step 2. On a demand and supply graph, how do you get the equilibrium point? 

On a demand and supply graph, the equilibrium point can be found where the demand and supply curves intersect. Price is on the x axis on both the demand and supply curves, and quantity demanded is on the y axis.

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Most popular questions from this chapter

We know that a change in the price of a product causes a movement along the demand curve. Suppose consumers believe that prices will be rising in the future. How will that affect demand for the product in the present? Can you show this graphically?

What is the difference between the supply and the quantity supplied of a product, say milk? Explain in words and show the difference on a graph with the

supply curve for milk.

How does a price floor set above the equilibrium level affect quantity demanded and quantity supplied?

How do you suppose the demographics of an aging population of “Baby Boomers” in the United States will affect the demand for milk? Justify your answer.

What is the difference between the demand and the quantity demanded of a product, say milk? Explain in words and show the difference on a graph with a demand curve for milk.
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