Multiple Choice
What happens in the market for corn if the government decides to subsidize farmers?
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3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
Based on the graph, at which price does the market reach equilibrium?
A
\$15
B
\$6
C
\$9
D
\$12
Verified step by step guidance1
Understand that market equilibrium occurs where the quantity demanded equals the quantity supplied.
Identify the demand curve and the supply curve on the graph provided.
Find the point where the demand curve intersects the supply curve; this intersection represents the equilibrium.
Look at the price level corresponding to this intersection point on the vertical axis (price axis).
The price at this intersection is the equilibrium price where the market clears.
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