The equilibrium price is aboutA) $8.50.B) $9.00.C) $9.20.D) $9.60.E) $10.00.

Question

Tamara Blackwell · Accepted Answer

Final Answer : C, Explanation :  The equilibrium price is where the quantity demanded equals the quantity supplied. From the table, as the price decreases from $10 to $8, the quantity demanded increases from 11 to 20, and the quantity supplied decreases from 18 to 10. The equilibrium is reached between $9 (where quantity demanded is 16 and quantity supplied is 15) and $8 (where quantity demanded is 20 and quantity supplied is 10). Since the equilibrium must be between these two prices, and closer to $9 because the quantities are closer to each other at this price, $9.20 is a reasonable estimate for the equilibrium price.

The equilibrium price is about

A) $8.50.
B) $9.00.
C) $9.20.
D) $9.60.
E) $10.00.

Definitions

Learning Objectives

Learning Objectives

Related questions