Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal).If the consumers' willingness to pay for the hundredth unit is $7.00 and the seller's willingness to accept for the hundredth unit is $10.00,then the equilibrium ________.

Question

Quizplus · Accepted Answer

Since the consumers' willingness to pay for the hundredth unit is $7.00 and the seller's willingness to accept for the hundredth unit is $10.00, it implies that the equilibrium price and quantity will be somewhere between $7.00 and $10.00 and less than 100 units. This is because the demand curve is downward sloping, and the price must be lower to induce consumers to buy more than 100 units. Therefore, the best choice is A.

Consider a Market Where the Demand Curve Is Downward Sloping