The red dot on the graph represents the product's equilibrium price.
Supply and Demand graph
When we put the demand and supply graphs together, the curves will intersect. This intersection is used to determine the equilibrium price. The equilibrium price represents the point where the supply of a product is equal to the demand for that product.
Affect of supply and demand on price of the product
If there is a sudden increase in demand of a product, the supply will be automatically decreased as there would not be enough products available in the market to meet the demand of the consumers. In order to manage this situation, the sellers would increase the price of the product.
Thus, the red dot on the graph represents the product's equilibrium price.
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