Question

In your own word's explain why a simple demand curves and a simple supply curve seem to form the letter x. explain what is happening at the cross of the x or where the demand and supply curves intersect.

Answer 1

Here the word X is called equilibrium.

Equilibrium is a point where demand and supply meets exactly.

On the demand curve ,the intersection of demand and supply curve is there.

the point and this point is called equilibrium point.

When demand generated by the consumer is exactly meet by the supply that is done by the producers then we can say that the equilibrium is generated in the market .

it is the ideal situation in the market

& sequilbaum point p-equilibrum price q=equitloorm quantity