Table 3.5
-Refer to Table 3.5.The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion.What are the equilibrium price and quantity (in thousands)for Aunt Maud's Lotion?
A)$20 and 30 thousand
B)$30 and 20 thousand
C)$60 and 30 thousand
D)$20 and 60 thousand

Question

Table 3.5 
-Refer to Table 3.5.The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion.What are the equilibrium price and quantity (in thousands)for Aunt Maud's Lotion?
A)$20 and 30 thousand 
B)$30 and 20 thousand 
C)$60 and 30 thousand 
D)$20 and 60 thousand

Quizplus · Accepted Answer

The equilibrium is found where the quantity demanded equals the quantity supplied. Setting the demand equation equal to the supply equation and solving for the quantity will give the equilibrium quantity. Then, substituting this quantity back into either the demand or supply equation will give the equilibrium price. Without the specific equations provided in the question, the general approach is to solve the system of equations. However, based on the options given and typical demand-supply analysis, the equilibrium is at $20 and 30 thousand, assuming this matches the correct solution of the equations.

Table 3.5 -Refer to Table 3.5.The Equations Above Describe the Demand and the Demand