Question

A graph has quantity on the x-axis and price on the y-axis. A supply line goes through (10, 25), (20, 30), (30, 35), (40, 40).A graph has quantity on the x-axis and price on the y-axis. A demand line goes through (10, 40), (20, 30), (30, 20), (40, 10).
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.

Answer 1

b. 30

The supply and demand lines intersect at (20, 30) (both graphs include that point), so the equilibrium price is 30.