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Solution

Correct Option: 3

The equilibrium point is where the demand curve and supply curve intersect. At this point, the quantity demanded equals the quantity supplied, resulting in no shortage or surplus.


In a demand-supply graph:

The demand curve slopes downward from top-left to bottom-right, showing that when price decreases, quantity demanded increases.

The supply curve slopes upward from bottom-left to top-right, showing that when price increases, quantity supplied increases.


The equilibrium point is the exact spot where these two lines cross.

From the given diagram:

Point A is where the two curves intersect.

Point B is on one of the curves but not at the intersection.

Point C is on one of the curves but not at the intersection.

Point F is on one of the curves but not at the intersection.


The equilibrium point is Point A (Option 3).

Point A represents where the demand and supply curves meet, which is the definition of market equilibrium.

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