Part 1: If column 1 represents the demand curve for a product and column 2 repre
ID: 1198695 • Letter: P
Question
Part 1: If column 1 represents the demand curve for a product and column 2 represents the supply curve, then the market reaches an equilibrium at a price of:
A. $12.50
B. $10
C. $7.50
D. $5
E. $2.50
Part 2: If column 1 represents the demand curve for a product and column 2 represents the supply curve, then at a price of $7.50, the market experiences ______________.
A. a shortage
B. excess supply
C. a surplus
D. excess demand
E. an equilibrium
Price Column 1 Column 2 $12.50 $10.00 $7.50 $5.00 $2.50 30 70 60 50 50 60 70 30Explanation / Answer
The price(7.50) at which the demand of a commodity(50) is equal to the supply(50) is known as equilibrium price.
If column 1 represents the demand curve for a product and column 2 represents the supply curve, then at a price of $7.50, the market experiences equilibrium.