The place where the supply curve intersects the demand curve is known as which of the following?

• A. Price ceiling
• B. Consumer surplus
• C. Producer surplus
• D. Market equilibrium

Answer: (D)

Verified step by step guidance

1. Understand that the supply curve represents the relationship between the price of a good and the quantity producers are willing to supply, while the demand curve represents the relationship between the price and the quantity consumers are willing to buy.
2. Recognize that the point where these two curves intersect indicates a price and quantity at which the quantity supplied equals the quantity demanded.
3. This intersection point is called the market equilibrium because it balances the interests of both consumers and producers.
4. Note that a price ceiling is a government-imposed limit on how high a price can be charged, which is different from the equilibrium point.
5. Also, consumer surplus and producer surplus refer to the benefits consumers and producers receive from trading at the equilibrium price, but they are not the point of intersection itself.