This means that at RV (roughly 20% TLC), this person's lung is exerting a pressure of 3 cm H20 to recoil inward, and must be balanced by a distending pleural pressure 3 cm H20 less than his alveolar pressure to keep the lung open.
Notice a plot point is placed on the graph at the coordinates of 20% TLC and +3 cm H20.
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