Question

which explains why the price indicated by p2 on the graph is lower than the equilibrium price? as prices fall, quantity demanded disappears. as prices fall, quantity demanded stays the same. as prices fall, quantity demanded goes down. as prices fall, quantity demanded goes up.

Explanation:

According to the law of demand, there is an inverse relationship between price and quantity demanded. When price decreases from equilibrium (as in the case of $p_2$ being lower than equilibrium price), quantity demanded increases along the demand - curve.

Answer:

As prices fall, quantity demanded goes up.