Multiple Choice
Refer to Table 14-1. Over which range of output is average revenue equal to price?
3. The Market Forces of Supply and Demand
Market Equilibrium
Multiple Choice
Refer to Table 10-1. What is the equilibrium quantity of output in the market?
A
The lowest quantity demanded in the table
B
The sum of all quantities supplied and demanded
C
The quantity at which quantity demanded equals quantity supplied
D
The highest quantity supplied in the table
Verified step by step guidance1
Understand the concept of market equilibrium: it occurs where the quantity demanded by consumers equals the quantity supplied by producers.
Look at the table and identify the quantities demanded and quantities supplied at different price levels.
Find the price at which the quantity demanded is exactly equal to the quantity supplied.
The equilibrium quantity of output is the quantity corresponding to this price where demand equals supply.
Ignore the lowest quantity demanded, the sum of all quantities, and the highest quantity supplied, as these do not define equilibrium.
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