Question

using the above supply/demand graph, what is the price at the point of equilibrium?
a. 105
b. 100
c. 95
d. 80

Explanation:

Locate the intersection point

Using the Market Equilibrium knowledge point

$$ \text{Equilibrium Point } (Q^*, P^*) = (80, 106) $$

Determine the equilibrium price

Using the Market Equilibrium knowledge point

$$ P^* = 105 $$

Answer:

• a. 105 (Correct answer)
• b. 100
• c. 95
• d. 80