Asked by Silvia Murillo on Sep 24, 2024
Verified
A market maker faces the following demand and supply for widgets.Eleven buyers are willing to buy at the following prices: $15,$14,$13,$12,$11,$10,$9,$8,$7,$6,$5.Eleven sellers are also willing to sell at the same prices.What is the equilibrium quantity in the market
A) 5 units
B) 6 units
C) 7 units
D) 8 units
Supply
The total amount of a specific good or service available for purchase at any given time.
Equilibrium Quantity
The quantity of goods or services supplied is exactly equal to the quantity of goods or services demanded at the market equilibrium price.
Demand
The amount of a product or service that buyers are ready and able to buy at different prices over a specified time frame.
- Assess how market prices and equilibrium are influenced by the dynamics of supply and demand.
Verified Answer
PV
Pooja Valecha3 days ago
Final Answer :
B
Explanation :
The equilibrium quantity is reached where the quantity demanded equals the quantity supplied. In this case, it occurs at $10, where 6 buyers are willing to buy at $10 or higher, and 6 sellers are willing to sell at $10 or lower, making the equilibrium quantity 6 units.
Learning Objectives
- Assess how market prices and equilibrium are influenced by the dynamics of supply and demand.