This table shows the demand and supply schedule of a good. According to the table shown, the equilibrium in this market will occur at:

Question

This table shows the demand and supply schedule of a good.  According to the table shown, the equilibrium in this market will occur at:

Quizplus · Accepted Answer

Equilibrium occurs where the quantity demanded equals the quantity supplied. At a price of $1.50, the quantity demanded is 31 and the quantity supplied is also 31, thus the market is in equilibrium. At any other price, there will be either excess demand or excess supply. Therefore, the answer is choice B.

This Table Shows the Demand and Supply Schedule of a Good