the equilibrium price is the price where the supply and demand are the same. in the figure below, the supply…
the equilibrium price is the price where the supply and demand are the same. in the figure below, the supply curve is in red and the demand curve is in blue. use this graph to estimate the equilibrium price. how many items are supplied at the equilibrium price?
Answer
Explanation:
Step1: Locate intersection point
The equilibrium occurs at the intersection of the supply and demand curves.
Step2: Read price value
From the x - axis at the intersection point, the equilibrium price is approximately $$2.5$.
Step3: Read quantity value
From the y - axis at the intersection point, the number of items supplied (and demanded) at equilibrium is approximately 250 items.
Answer:
Equilibrium price: $$2.5$ Number of items supplied at equilibrium: 250 items