Section: Principles of Microeconomics

19) The intersection of a market demand curve and a market supply curve for a commodity determines

1. the equilibrium quantity for the commodity.
2. the equilibrium price for the commodity.
3. the point of neither surplus nor shortage for the commodity.
4. all of the above.

The intersection of the market demand curve and the market supply curve determines the equilibrium point. The intersection point determines the price and quantity of equilibrium.