a stores supply/demand graph for mp3 players is shown above. if the price is at the equilibrium point, how much money will the store make by selling mp3 players?
a. $1,275
b. $1,600
c. $3,150
d. $3,300

Question

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Market Equilibrium", "Total Revenue Calculation" ], "new_concepts": [], "current_concepts": [ "Market Equilibrium", "Total Revenue Calculation", "Demand Curve Analysis", "Supply Curve Analysis" ] } ## Find the equilibrium point Using the *Market Equilibrium* knowledge point $$ \begin{aligned} &\text{Equilibrium Price } (P^*) = 54\ &\text{Equilibrium Quantity } (Q^*) = 60 \end{aligned} $$ ## Calculate total revenue Using the *Total Revenue Calculation* knowledge point $$ \begin{aligned} \text{Total Revenue} &= P^* \times Q^* \ &= 54 \times 60 \ &= 3240 \end{aligned} $$ ## Match with closest option Using the *Total Revenue Calculation* knowledge point $$ \begin{aligned} &\text{Calculated Revenue} = \$3,240\ &\text{Closest Option} = \$3,150 \quad (\text{Option c}) \end{aligned} $$

a. $1,275

b. $1,600

c. $3,150

d. $3,300

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Economics", "Total Revenue Calculation" ] }

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Question

Explanation:

Find the equilibrium point

Calculate total revenue

Match with closest option

Answer: