Could someone help me out on this question please? Question 17 of 29 Map Sapling

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Could someone help me out on this question please?

Question 17 of 29 Map Sapling Learning The following table shows information on the conditions of demand and supply for online music files, where the quantity of online music is measured in thousands of mp3 files. Price S0.65 S0.85 $1.05 S1.25 Quantity Demanded Quantity Supplied (thousands) 395 335 295 245 (thousands) 245 265 295 365 What are the equilibrium price and quantity? Number Number Equilibrium quantity: 285 thousand Equilibrium price: 85

Explanation / Answer

In equilibrium, Quantity demanded is equal to Quantity supplied, at a common price. From the table, this condition is satisfied when

Quantity demanded = Quantity supplied = 295 (thousand) [Equilibrium quantity], for which

Price = $1.05 [Equilibrium price]

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