Multiple Choice
In the context of market equilibrium, in which situation are buyers capable of taking advantage of sellers?
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3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
Given the following table of demand and supply schedules, what is the equilibrium price?| Price | Quantity Demanded | Quantity Supplied ||-------|-------------------|-------------------|| 2 | 100 | 40 || 4 | 80 | 80 || 6 | 60 | 120 || 8 | 40 | 160 |Select the correct equilibrium price from the options below.
A
6
B
8
C
2
D
4
Verified step by step guidance1
Understand that the equilibrium price is the price at which the quantity demanded equals the quantity supplied.
Examine the table and identify the price points where quantity demanded and quantity supplied are listed.
Compare the quantity demanded and quantity supplied at each price to find where they are equal.
Note that at price \$4\(, the quantity demanded is \)80\( and the quantity supplied is also \)80$, indicating equilibrium.
Conclude that the equilibrium price is the price where demand equals supply, which is \$4$ in this case.
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