PRC-3 · Chapter 10 · Question 20 of 70
At the point where the downward-sloping demand curve intersects the upward-sloping supply curve, the market achieves a state where:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Quantity demanded perfectly equals quantity supplied
Explanation
The intersection marks the market equilibrium, where the plans of buyers and sellers perfectly match, resulting in a market-clearing price with no shortage or surplus.
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