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Refer to the above diagram. The equilibrium price and quantity in this market will be: A. 1.00 and 200 B. 1.60 and 130. C. .50 and 130. D. 1.60 and 290.

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Refer to the above diagram. The equilibrium price and quantity in this market will be:
A. 1.00 and 200
B. 1.60 and 130.
C. .50 and 130.
D. 1.60 and 290.

Refer to the above diagram. The equilibrium price and quantity in this market will be: A. 1.00 and 200 B. 1.60 and 130. C. .50 and 130. D. 1.60 and 290.

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GarrettMaster · Tutor for 5 years

Answer

To determine the equilibrium price and quantity, we need to find the point where the supply curve intersects the demand curve. According to the picture details provided, the supply and demand curves intersect at the point (200, $1.00).Step 1: Identify the intersection point of the supply and demand curves.- The supply curve passes through the points (130,$0.50) and (200, $1.00).- The demand curve passes through the points (130,$1.00) and (200, $0.50).- The intersection point is given as (200,$1.00).Step 2: Determine the equilibrium price and quantity.- The equilibrium price is the price at which the quantity supplied equals the quantity demanded.- The equilibrium quantity is the quantity at which the price on the supply curve equals the price on the demand curve.According to the intersection point provided, the equilibrium price is $1.00, and the equilibrium quantity is 200 units.Answer:A.$1.00 and 200.
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