Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed.

-Refer to Table 4-10. If the four suppliers listed are the only suppliers in this market and the market demand schedule is: the equilibrium price and quantity are

Question

Table 4-10
The following table shows the number of cases of water each seller is willing to sell at the prices listed.
 
-Refer to Table 4-10. If the four suppliers listed are the only suppliers in this market and the market demand schedule is:  the equilibrium price and quantity are

Quizplus · Accepted Answer

At a price of $6.00, the quantity demanded is 600 cases (200 + 200 + 100 + 100) which is equal to the total quantity supplied by suppliers A and B (300 + 300). Therefore, $6.00 is the equilibrium price and 600 cases is the equilibrium quantity. None of the other price-quantity combinations result in market equilibrium.

Table 4-10 The Following Table Shows the Number of Cases of Water