The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.

-Refer to the figure above.When the demand curve for flash drives is D and the supply curve of flash drives is S₁,the equilibrium price is ________.

Question

The following figure shows the demand and supply curves for USB flash drives at different price levels. D is the demand curve, and S₁ is the initial supply curve.
 
-Refer to the figure above.When the demand curve for flash drives is D and the supply curve of flash drives is S₁,the equilibrium price is ________.

Quizplus · Accepted Answer

The equilibrium price is where the demand curve (D) intersects with the supply curve (S₁). In this case, it is at a price of $5. At this price, the quantity demanded and supplied is 60 units. Any price above $5 would result in a surplus of flash drives (quantity supplied exceeds quantity demanded), and any price below $5 would result in a shortage of flash drives (quantity demanded exceeds quantity supplied).

The Following Figure Shows the Demand and Supply Curves for USB