Answer to Question #246170 in Macroeconomics for Emi

Question

Assume the market of an IPhone 12 Pro is in the equilibrium draw a correctly labeled graph of the market for IPhone 12 Pro labeling price and PE and QE at the equilibrium

Answer 1

A graph showing the market equilibrium of an iPhone 12 pro.

The point at which the supply curve meets the demand curve marks the market equilibrium (E) of the iPhone 12 pro.

The equilibrium price (PE) is shown by the point P*. This is the price at which the iPhone 12 pro is bought when all other factors remain constant.

The equilibrium quantity (QE) is shown by the point Q*. This represents the number of iPhone 12 pro which are bought from the market when the two market forces are in control.