Use the following to answer questions :
-(Table: Competitive Market for Good Z) Look at the table Competitive Market for Good Z. The equilibrium price and quantity in this market are, respectively:
A)$5 and 40 units.
B)$20 and 60 units.
C)$10 and 30 units.
D)$15 and 20 units.

Question

Use the following to answer questions : 
-(Table: Competitive Market for Good Z) Look at the table Competitive Market for Good Z. The equilibrium price and quantity in this market are, respectively:
A)$5 and 40 units. 
B)$20 and 60 units. 
C)$10 and 30 units. 
D)$15 and 20 units.

Quizplus · Accepted Answer

At a price of $10, the quantity demanded by consumers is 30 units, which is exactly equal to the quantity supplied by producers. This is the definition of market equilibrium. Therefore, the equilibrium price and quantity in this market are $10 and 30 units, respectively.

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