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the price of bonds to increase and the interest rate to decrease. the price of bonds to decrease and the interest rate to inc
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Answer #1

Option B

  • A market is said to be in equilibrium if it's supply curve and demand curve interests each other at a point when the supply equals demand.
  • At this point all the market outcomes are said to be in equilibrium and the price of any good at this point is called the equilibrium price while the quantity at this point is the equilibrium quantity.
  • From the figure it is clear that the supply and demand curves Intersect each other at an equilibrium price $6 and an equilibrium quantity of 9 units on Y-axis and X-axis respectively.
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