Exhibit 3-6 Milk market

Price per Quart

Quantity Demanded

(Quarts per week)

Quantity Supplied

(Quarts per week)

0.70

20

180

0.60

60

140

0.50

100

100

0.40

140

60

0.30

180

20

-In Exhibit 3-6, which of the following are the equilibrium price and equilibrium quantity in the milk market?

Question

Exhibit 3-6 Milk market

Price per Quart	Quantity Demanded (Quarts per week)	Quantity Supplied (Quarts per week)
0.70	20	180
0.60	60	140
0.50	100	100
0.40	140	60
0.30	180	20

-In Exhibit 3-6, which of the following are the equilibrium price and equilibrium quantity in the milk market?

Quizplus · Accepted Answer

The equilibrium price is where the quantity demanded equals the quantity supplied. In this case, it is where the price per quart is $0.50 and the quantity demanded and supplied is 100 quarts of milk. At any higher price, there is excess supply, and at any lower price, there is excess demand. Therefore, the equilibrium price is $0.50 per quart and the equilibrium quantity is 100 quarts of milk.

Exhibit 3-6 Milk Market