4
QuizMultiple Choice

Microeconomics — Test

Question 4 • Economics

On a graph, an equilibrium point is where

Answer
A
a supply curve is higher than a demand curve.
B
a supply curve and a demand curve meet.
C
the supply and demand curves head down.
D
the supply and demand curves head up.

Explanation

An equilibrium occurs where the quantity supplied equals the quantity demanded. On a graph, that is the point where the supply curve and demand curve intersect, or meet. The direction the curves head and which curve is higher do not by themselves define equilibrium.

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