Table 9.4
-Table 9.4 represents 3 markets for used motorcycles. Which of the markets in Table 9.4 are in equilibrium?
A) 1 only
B) 2 only
C) 3 only
D) 1 and 3

Question

Table 9.4
-Table 9.4 represents 3 markets for used motorcycles. Which of the markets in Table 9.4 are in equilibrium?
A) 1 only 
B) 2 only 
C) 3 only 
D) 1 and 3

Quizplus · Accepted Answer

Market 2 is in equilibrium because the quantity supplied equals the quantity demanded, resulting in a price of $2,500. In Market 1, the quantity supplied is greater than the quantity demanded, indicating a surplus which will put downward pressure on price. In Market 3, the quantity demanded is greater than the quantity supplied, indicating a shortage which will put upward pressure on price. Therefore, only Market 2 is in equilibrium.

Table 9.4 -Table 9.4 Represents 3 Markets for Used Motorcycles. Which of Which