Which statement defines equilibrium in a graph showing demand and supply curves?
oa. it is the point where the demand and supply curves intersect.
b. it is the point where the demand and supply curves begin.
c. it is the point on the demand curve where demand is highest.
d. it is the point on the supply curve where supply is highest.

A. It is the point where the demand and supply curves intersect.

Explanation:

The term equilibrium is used in economics to mean balance.  The equilibrium price is the balance between the demand and supply forces. Therefore, the equilibrium price is the prevailing market price.

In a graph that shows both the supply and demand curves, the equilibrium point will be the intersection point of the two curves. The intersection or equilibrium point will represent the current market price. A change to either the quantity demanded or quantity supplied will cause the equilibrium point to change.

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