12. When are equilibrium prices achieved?
(1 point)
Responses
when supply equals demand
when supply equals demand
when demand is greater than supply
when demand is greater than supply
when prices go as high as possible
when prices go as high as possible
when supply is greater than demand
when supply equals demand.
When equilibrium prices are achieved, it occurs when supply equals demand.
Equilibrium prices are achieved when supply equals demand. This means that the quantity of a product or service that producers are willing to sell is equal to the quantity that consumers are willing to buy at a given price. To determine equilibrium prices, you can do the following:
1. Plot the supply curve: On a graph, plot the supply curve, which shows the relationship between the quantity of a product or service that producers are willing to supply and the price they can charge.
2. Plot the demand curve: Next, plot the demand curve, which shows the relationship between the quantity of a product or service that consumers are willing to buy and the price they are willing to pay.
3. Identify the intersection: The equilibrium price occurs at the point where the supply curve intersects the demand curve. At this price, the quantity supplied by producers is equal to the quantity demanded by consumers.
4. Determine the equilibrium quantity: Once you have identified the equilibrium price, you can determine the equilibrium quantity by looking at the corresponding point on either the supply or demand curve.
It's important to note that equilibrium prices can change over time due to various factors, such as changes in consumer preferences, production costs, or government regulations.