Question

A graph has quantity on the x-axis and price (dollars) on the y-axis. A supply line goes through (20, 25), (40, 40), (60, 55). A demand line goes through (15, 85), (60, 55), (90, 35).
A store’s 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

Answer 1

Equilibrium is at the intersection (60, 55) — quantity 60 at price $55. Revenue = 60 × $55 = $3,300.

Answer: d. $3,300