The equilibrium price is located at which of the following points?


Athe intersection of supply and demand curves
Bthe supply curve’s lowest point
Cthe demand curve’s peak
Dwhere the production possibilities frontier is furthest to the right

Verified Answer :

It is letter A. The intersection of the supply and demand curves. This is where the equilibrium price can be located but the these curves are said to be in different direction,since supply and demand inversely proportional to each other. The equilibrium price too, is where the intention of buyers and sellers meet.

Answer: A

Explanation