Answered: The equilibrium price and quantity,…

Business

Economics

The equilibrium price and quantity, respectively, are O $4 and 50 units. $2 and 65 units. $3 and 50 units.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.

Question

**Table and Explanation**

The table displays the relationship between price, quantity demanded, and quantity supplied:

| Price (Dollars per unit) | Quantity Demanded (Units) | Quantity Supplied (Units) |
|--------------------------|---------------------------|---------------------------|
| 5 | 30 | 80 |
| 4 | 40 | 65 |
| 3 | 50 | 50 |
| 2 | 60 | 35 |
| 1 | 70 | 20 |

**Question and Options**

The equilibrium price and quantity, respectively, are:

- ○ $4 and 50 units.
- ○ $2 and 65 units.
- ● $3 and 50 units.
- ○ $3 and 60 units.

**Analysis**

The equilibrium point occurs where quantity demanded equals quantity supplied. According to this table, the equilibrium price is $3, with an equilibrium quantity of 50 units.

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