1. Given the supply and demand schedules for calculators shown below, what is the market’s equilibrium price? Demand Schedule for Calculators Supply Schedule for Calculators Price ($)Quantity Price ($)Quantity 500 5016 404 4012 308 308 2012 206 1016 103 120 10 Solution:

The market's equilibrium price is the price at which the quantity of product supplied is equal to…

Answered: 1. Given the supply and demand…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 8PA

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1. Given the supply and demand schedules for calculators shown below, what is the market’s equilibrium price?

Demand Schedule for Calculators		Supply Schedule for Calculators

Price ($)	Quantity		Price ($)	Quantity
50	0		50	16
40	4		40	12
30	8		30	8
20	12		20	6
10	16		10	3
1	20		1	0

Solution:

Definition Video Formula Definition Phenomenon in which market supply and demand balance each other. Market equilibrium is the economic state in which the market demand curve intersects the market supply curve, giving us the equilibrium price and equilibrium quantity for which a commodity can be sold and purchased in an economy. When market equilibrium is achieved, it suggests that all resources have been allocated efficiently and that there is just a distribution of income and resources in the economy. Video Formula

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