Question

Apply: Market Dynamics and Efficienc.. Help Seve & Exit Submit 3,900 4,800 5,See 4,890 2 Instructions: Enter your answers as a whole number 0.34 a. If the price is $15 per bottle, how many bottles of sunscreen are demanded and supplied? Bo Qdbottles Os 2500 bottles In this case, there would be owrwardpressure on the price. b. What is the equilibrium price and quantity in the market for sunscreen? bottles Pre 2 of 30 li Score answer> F9 F10 F12 rsert Dee 5 6 8 Q WE Caps Lock

Answer 1

a) At price $15

Qd = 5000 bottles

Qs = 2500 bottles

In this case there would be upward pressure on price.

Explanation:

there would be upward pressure on prices because the quantity demanded is higher than quantity supplied so due to high demand in comparison to supply, there  would be an upward pressure on price.

b) the equilibrium price is where the quantity demanded Qd is equal to quantity supplied Qs

Qd = Qs

and according to the table Qd = Qs = 4000 at price $20

So,

P = $20

Q = 4000 bottles.