Use the following to answer questions :
Table 3-1
-According to Table 3-1, the equilibrium level of output is:
A)1750.
B)1625.
C)1500.
D)1375.
E)none of the above.

Question

Use the following to answer questions :
Table 3-1 
-According to Table 3-1, the equilibrium level of output is:
A)1750. 
B)1625. 
C)1500. 
D)1375. 
E)none of the above.

Quizplus · Accepted Answer

The equilibrium level of output is where the quantity demanded (Qd) equals the quantity supplied (Qs). From Table 3-1, at a price of 12, Qd is 1000 and Qs is 1500. At a price of 14, Qd is 2000 and Qs is 1500. The point where Qd and Qs intersect is the equilibrium level of output, which is 1500. Therefore, the best choice is C)1500.

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