-Refer to the diagram above.Leaving the free market to decide on production,output would be _____ units and price would be ____ per unit.
A) 120;$1.00
B) 120;$0.90
C) 100;$0.90
D) 100;$1.00
E) 100;$1.40

Question

-Refer to the diagram above.Leaving the free market to decide on production,output would be _____ units and price would be ____ per unit.
A) 120;$1.00 
B) 120;$0.90 
C) 100;$0.90 
D) 100;$1.00 
E) 100;$1.40

Quizplus · Accepted Answer

The correct answer is A because at the equilibrium point, the quantity supplied equals the quantity demanded. At this point, the price is $1.00 and the quantity is 120 units.

-Refer to the Diagram Above