Question

How can you locate the equilibrium point on a

demand and supply graph?

Short answer

The point where demand curve and supply curve intersect each other considered as equilibrium.

Step-by-step solution

Step 1.  Concept

In a market, the demand curve shows the relationship between the price and the quantity demanded. The supply curve shows the relationship between the price and the quantity supplied.

Step 2.Demand-Supply Curve

We can locate the equilibrium point on a demand and supply graph, where both the demand curve and supply curve intersect each other at a certain point.

Explanation-

The demand curve has a downward sloping that shows the inverse relationship between price & quantity.

The supply curve has an upward sloping that reflects a positive relationship between price and quantity.

A certain point where both curves intersect refers to as Equilibrium.