Figure 3-10 Figure 3-10 illustrates the conditions of demand and supply in the market for compact discs. Indicate the equilibrium price and quantity.

Question

Figure 3-10  Figure 3-10 illustrates the conditions of demand and supply in the market for compact discs. Indicate the equilibrium price and quantity.

Quizplus · Accepted Answer

The equilibrium price is where the demand and supply curves intersect. This occurs at a price of $15 and a quantity of 3,000. At this price, the quantity demanded by consumers (3,000) equals the quantity supplied by producers (also 3,000), resulting in a market equilibrium. Therefore, choice B is the correct answer.

Figure 3-10 Figure 3-10 Illustrates the Conditions of Demand