Question

The table contains information on the price per month and the monthly demand and supply of online music streaming subscription Price $10.00 $10.20 $10.40 $10.60 Quantity demanded (thousands)Quantity supplied (thousands) 570 510 470 420 420 440 470 540 What are the equilibrium price and quantity? Equilibrium price: $ Equilibrium quantity thousand subscriptions

Answer 1

The equilibrium in the goods or service market occurs at the point where quantity demanded and quantity supply both are equal to each other.

In the given table, we can see that quantity demanded and quantity supply is equal at 470 thousand subscription with $10.40 as a price.

Equilibrium price: $10.40.

Equilibrium quantity: 470 thousand subscription.