Horizontal axis shows the quantity in billions of pounds per year. It ranges from 0 to 80 in increments of 10. The vertical axis shows the price in cents per pound. It ranges from 0 to 40 in increments of 10. Two intersecting lines are drawn in the graph. The supply curve, marked as S, starts on the vertical axis at 5 and moves diagonally upwards. The demand curve, marked as D, starts at 40 on the vertical axis and moves diagonally downward. The two lines intersect at a point.
The first graph on the left shows an efficient dairy products market. The intersecting point of the two curves is labeled as “Market equilibrium is efficient”. Dotted lines are drawn from this point, perpendicular to both the axes, marking the (x, y)coordinates as (60, 10). ...
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