Question

2. Use the table below to answer the following questions.

Price	Quantity Demanded	Quantity Supplied
$10	100	160
8	120	145
6	130	130
4	140	115
2	150	100

1. Graph the supply and demand curves.

2. What are equilibrium price and equilibrium quantity?

Answer 1

A.

The demand curve is inversely sloped in nature which shows the inverse relationship between price and quantity demanded

If price increases then quantity demanded will decrease and vice versa

If we talk about the supply curve then it shows the direct relationship between price and quantity supplied

If price increases then quantity supply will increase and vice versa

let's draw the demand and supply curve

B.

Equilibrium is a point where demand and supply curve intersects

The price correspondent equilibrium is called equilibrium price

The quantity corresponding to equilibrium is called equilibrium quantity

Here the equilibrium price is at $6 and equilibrium quantity is 130 units