Question

At what price will the quantity of the product supplied to the market equal the quantity of the product demanded by the market? A) $\$ 90$ B) $\$ 120$ C) $\$ 133$ D) $\$ 155$

Name: Problem 18, Chapter :
Uploaded: 2019-05-13T21:43:45-08:00
Duration: 1 min 6 s
Channel: Lily An
Description: At what price will the quantity of the product supplied to the market equal the quantity of the product demanded by the market? A) 90 B) 120 C) 133 D) 155

   At what price will the quantity of the product
supplied to the market equal the quantity of the
product demanded by the market?
A) $\$ 90$
B) $\$ 120$
C) $\$ 133$
D) $\$ 155$

Instant Answer

Solved by Expert Lily An

05/13/2019

Step 1

We need to find the price at which these two quantities are equal. This means we need to set the two equations equal to each other. Let's assume the supply equation is $\frac{1}{2}p + 40$ and the demand equation is $225 - p$. So, we have: \[\frac{1}{2}p + 40 = 225 Show more…

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At what price will the quantity of the product supplied to the market equal the quantity of the product demanded by the market? A) $\$ 90$ B) $\$ 120$ C) $\$ 133$ D) $\$ 155$

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Key Concepts

Market Equilibrium

Market equilibrium is the condition where the quantity of a product that sellers are willing to supply exactly equals the quantity that buyers are willing to purchase. This state of balance means that there is no inherent force for the price to change, as the market demand and supply are in perfect harmony.

Equilibrium Price

The equilibrium price is the specific price at which market equilibrium is achieved. At this price, the amount of the product that consumers are ready to buy is equal to the amount that producers are ready to sell, ensuring that there is neither excess supply nor excess demand in the market.

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