Why would the intersection of a linear demand curve and a linear supply curve lie in the first quadrant?

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2026-03-06 17:55

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The intersection of a linear demand curve and a linear supply curve lies in the first quadrant because both price and quantity are non-negative in a typical market setting. The demand curve slopes downward, indicating that as price decreases, quantity demanded increases, while the supply curve slopes upward, showing that as price increases, quantity supplied also increases. The point where these two curves intersect represents the equilibrium price and quantity, both of which must be positive in a functioning market. Thus, this intersection is located in the first quadrant, where both axes are positive.

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