Answer:
A = supply
B = equilibrium
C = demand
D = price
E = quantity
Explanation:
For easy clarification, the diagram was labelled in order to identify what should be in each box. Find attached the labelled diagram.
The price of a commodity is determined by the interaction of supply and demand in a market.
The supply and demand graph shows the relationship between price and quantity demanded on a graph.
In this graph, the price is plotted against the quantity. The price is represented on the vertical axis (y), while the quantity is represented on the horizontal axis (x).
The demand curve has a downward slope while the supply curve has an upward slope.
The intersection between the line of demand and supply is the equilibrium.
In equilibrium the quantity of goods consumers want to buy is equal to the quantity of goods producers want to sell. The resulting price from this interaction is called the equilibrium price.
The resulting quantity from this interaction is called the equilibrium quantity.
A = supply
B = equilibrium
C = demand
D = price
E = quantity
