Exhibit 20-7

Refer to Exhibit 20-7. For graph (3), if the price of Y is $200, the price of X is
A)$50.
B)$40.
C)$30.
D)$25.
E)$15.

Question

Exhibit 20-7 ​

Refer to Exhibit 20-7. For graph (3), if the price of Y is $200, the price of X is
A)$50. 
B)$40. 
C)$30. 
D)$25. 
E)$15.

Quizplus · Accepted Answer

When the price of Y is $200, the quantity demanded for Y is 5 (from the point where the demand curve intersects the price of $200 on the Y-axis). At this quantity demanded for Y, the quantity supplied for X is 20 (from the point where the supply curve intersects the quantity of 5 on the demand curve). Therefore, the equilibrium price of X is $25 (from the point where the supply and demand curves intersect).

Exhibit 20-7 ​ Refer to Exhibit 20-7. for Graph (3), If the Price

Exhibit 20-7 Refer to Exhibit 20-7. for Graph (3), If the Price