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Standard XII
Economics
Question

Equilibrium price is the price when ________.
  1. supply is less than demand
  2. demand is very high
  3. supply is greater than demand
  4. supply is equal to demand

A
supply is less than demand
B
demand is very high
C
supply is greater than demand
D
supply is equal to demand
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Solution
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Equilibrium price is when the demand is equal to supply.
In the diagram the point where demand and supply intersect is the equilibrium.
Image result for equilibrium price

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