Question

The local orange juice market in Arden-Arcade has demand and supply curves given by the following data. (All quantities are in thousands of gallons per week.)

Price per gallon	$1.75	$2.00	$2.25	$2.50	$2.75	$3.00	$3.25
Quantity demanded	10	9	8	7	6	5	4
Quantity supplied	0	4	8	12	16	20	24

What are the equilibrium price and quantity of orange juice?

Group of answer choices

$3.25 and 4

$2.25 and 8

$2.50 and 12

$1.75 and 10

Answer 1

At equilibrium point quantity demanded and quantity supplied both are equal to each other.

Hence, the equilibrium quantity of orange juice is 8.

The price level corresponding to quantity level of juice of 8 is $2.25

Hence, the equilibrium price of orange juice is $2.25

Answer: Option (B)