based on the supply graph and the demand graph shown above, what is the price at the point of equilibrium?
a. 20
b. 30
c. 40
d. there is not enough information given to determine the point of equilibrium.

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", "Supply Curve Analysis", "Demand Curve Analysis" ], "new_concepts": [], "current_concepts": [ "Market Equilibrium", "Supply Curve Analysis", "Demand Curve Analysis" ] } ## Find supply curve equation Using the *Supply Curve Analysis* knowledge point $$ \begin{aligned} &\text{Points on Supply curve } (S): (0, 20), (20, 30)\ &m_S = \frac{30 - 20}{20 - 0} = 0.5\ &P = 0.5Q + 20 \end{aligned} $$ ## Find demand curve equation Using the *Demand Curve Analysis* knowledge point $$ \begin{aligned} &\text{Points on Demand curve } (D): (0, 50), (20, 30)\ &m_D = \frac{30 - 50}{20 - 0} = -1\ &P = -Q + 50 \end{aligned} $$ ## Calculate equilibrium point Using the *Market Equilibrium* knowledge point $$ \begin{aligned} &0.5Q + 20 = -Q + 50\ &1.5Q = 30\ &Q = 20\ &P = 30 \end{aligned} $$

a. 20

b. 30

c. 40

d. There is not enough information given to determine the point of equilibrium.

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Microeconomics", "Market Equilibrium" ] }

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Question

Explanation:

Find supply curve equation

Find demand curve equation

Calculate equilibrium point

Answer: