Question

What is the equilibrium price and quantity?

Market Demand	Price	Market Supply
60	100	60
40	200	80
20	300	100
10	400	120

Equilibrium Price: _________

Equilibrium Quantity: _________

Question 2:

Graphically, an equilibrium can be found where:

A. at any price above the intersection of demand and supply curves.

B. at any price below the intersection of the demand and supply curves.

C. the intersection of the demand curve and the horizontal axis.

D. the intersection of the demand and supply curves.

Answer 1

a) Equilibrium is at the point where the demand and the supply are equal, that will be at the price of 100 and the demand and the supply will be 60 each.

b) "D"

Graphically the equilibrium will be at a point were the demand and supply in the market will be equal or at the intersection point.