Question

Exhibit 5-3

Use the following information about demand and supply schedules to answer the question.

Price	D1	D2	S1	S2
$12	5	9	19	14
$10	8	12	17	12
$ 8	11	15	15	10
$ 6	13	18	13	8
$ 4	16	21	11	6
$ 2	18	24	9	4

Refer to Exhibit 5-3. If D ₂ and S ₁ represent the demand and supply schedules in a particular market, the equilibrium price and quantity are ____ and ____, respectively.

		$12; 10
		$12; 9
		$10; 17
		$8; 15

Answer 1

Answer;

Option D is the correct answer.

The demand is defined as the desire and willingness to pay for a commodity at the given rage of price. Supply is the willingness and ability to produce to create goods and services to the market.

The equilibrium is occurs when the demand is equal to the supply.

If D ₂ and S ₁ represent the demand and supply schedules in a particular market, the equilibrium price and quantity are $8 and 15 , respectively. This is shown in the following figure;

In the above figure, x-axis shows quantity and y-axis shows price. D2 is the demand curve and S1 is the supply curve. E is the equailibrium point with price $8 and quantity 15.