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

The equilibrium price and quantity occur where the market demand intersects the market supply. At a price of $6.00, Supplier 1 is willing to sell 200, Supplier 2 is willing to sell 300, Supplier 3 is willing to sell 100, and Supplier 4 is willing to sell 500 cases of water, for a total supply of 1100 cases. This price also corresponds to a market demand of 600 cases (i.e. the quantity demanded when the price is $6.00). Therefore, the market is in equilibrium at $6.00 and 600 cases.

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