Suppose, there is a situation where two individuals are engaged in exchange and if individual 1 is a price-maker and individual 2 is a price-taker, equilibrium

takes place on the offer curve of individual 1
takes place on the offer curve of individual 2
takes place at the intersection point of the two offer curves
is indeterminate

The correct answer is: C. takes place at the intersection point of the two offer curves.

An offer curve is a graph that shows the quantities of a good that an individual is willing to offer for sale at different prices. The offer curve of a price-maker is downward-sloping, while the offer curve of a price-taker is horizontal. This is because a price-maker can set the price of the good, while a price-taker must accept the market price.

The equilibrium in an exchange between a price-maker and a price-taker occurs at the intersection of the two offer curves. This is because at this point, the price-maker is willing to sell the same quantity of the good that the price-taker is willing to buy.

Option A is incorrect because the offer curve of a price-maker does not take into account the price-taker’s demand. Option B is incorrect because the offer curve of a price-taker does not take into account the price-maker’s supply. Option D is incorrect because the equilibrium is always determinate.