Table 16-2

Neem Products sells its Ayurvedic Neem toothpaste in two completely isolated markets with demand schedules as shown in Table 16-2. The average cost of production is constant at $2 per tube.
-Refer to Table 16-2.How many tubes of toothpaste will Neem sell in West Fall and at what price?
A)Q = 2 units; P = $4.50
B)Q = 3 units; P = $4
C)Q = 4 units; P = $3.50
D)Q = 5 units; P = $3

Question

Table 16-2
  
Neem Products sells its Ayurvedic Neem toothpaste in two completely isolated markets with demand schedules as shown in Table 16-2. The average cost of production is constant at $2 per tube.
-Refer to Table 16-2.How many tubes of toothpaste will Neem sell in West Fall and at what price?
A)Q = 2 units; P = $4.50 
B)Q = 3 units; P = $4 
C)Q = 4 units; P = $3.50 
D)Q = 5 units; P = $3

Quizplus · Accepted Answer

The correct answer is based on the equilibrium point where the quantity demanded equals the quantity supplied at the given price.

Table 16-2 Neem Products Sells Its Ayurvedic Neem Toothpaste in Two Completely