Table 7-3
Market supply and demand for good X
$\begin{array}{|c|c|c|}
\hline \text { Price (\$) } & \text { Quantity demanded } & \text { Quantity supplied } \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 12 & 30 \
\hline 8.00 & 24 & 24 \
\hline 6.00 & 36 & 18 \
\hline 4.00 & 48 & 12 \
\hline 2.00 & 60 & 6 \
\hline 0.00 & 72 & 0 \
\hline
\end{array}$
-Refer to Table 7-3.The equilibrium or market-clearing price is:
A)$10.00
B)$8.00
C)$6.00
D)$4.00

Question

Table 7-3
Market supply and demand for good X
 $\begin{array}{|c|c|c|}
\hline \text { Price (\$) } & \text { Quantity demanded } & \text { Quantity supplied } \
\hline 12.00 & 0 & 36 \
\hline 10.00 & 12 & 30 \
\hline 8.00 & 24 & 24 \
\hline 6.00 & 36 & 18 \
\hline 4.00 & 48 & 12 \
\hline 2.00 & 60 & 6 \
\hline 0.00 & 72 & 0 \
\hline
\end{array}$
-Refer to Table 7-3.The equilibrium or market-clearing price is:
A)$10.00
B)$8.00
C)$6.00
D)$4.00

Quizplus · Accepted Answer

At $8.00, the quantity demanded and quantity supplied are both 6 units, which is the equilibrium or market-clearing quantity. Any price higher than $8.00 would result in a surplus, while any price lower than $8.00 would result in a shortage. Therefore, $8.00 is the equilibrium or market-clearing price.

Table 7-3 Market Supply and Demand for Good X -Refer to Table 7-3

Table 7-3
Market Supply and Demand for Good X -Refer to Table 7-3