The following aggregate demand and supply schedules are for a hypothetical economy: Refer to the above data.The equilibrium price level will be:
A)150
B)200
C)250
D)300

Question

The following aggregate demand and supply schedules are for a hypothetical economy:  Refer to the above data.The equilibrium price level will be:
A)150 
B)200 
C)250 
D)300

Quizplus · Accepted Answer

The equilibrium price level is where aggregate demand and aggregate supply intersect. Looking at the given schedules, we can see that at a price level of 200, the quantity demanded and quantity supplied both equal 700. This is the only point of intersection between the two schedules, indicating the equilibrium price level. Therefore, the correct answer is B.

The Following Aggregate Demand and Supply Schedules Are for a Hypothetical