Question

the graph shows the supply and demand curves for a certain product, which has a current selling price of $400. The laws of supply and demand most support which conclusion about the product? A: The current selling price matches the product's equilibrium price. B: The current selling price for the product is too low. C: The current selling price for the product is the result of a surplus. D: The current selling price for the product is too high.

Answer 1

Answer: A: The current selling price matches the product's equilibrium price.

Explanation:

The graph is attached for a better analysis.

From the graph, we can see that the Equilibrium price is $400 while the equilibrium quantity supplied and Equilibrium quantity demanded is 4000.

Since the current selling price is $400 and the equilibrium price is $400 as well, then we can say that the current selling price matches the product's equilibrium price.

Therefore, the correct option is A.