Given the supply and demand conditions illustrated in Figure 3-2, the equilibrium price of steak is

A) $2 per pound.
B) $4 per pound.
C) $6 per pound.
D) $8 per pound.

Equilibrium Price

The price in the market where the amount of goods available matches the amount of goods people want to buy.

Supply

The aggregate quantity of a product or service that can be bought at a specific price point within a particular market.

Demand

The quantity of a product or service that consumers are willing and able to purchase at a given price.