Question

A graph has quantity on the x-axis and price (dollars) on the y-axis. A demand line goes through (20, 60), (40, 45), (60, 30). A supply line goes through (20, 15), (30, 30), (40, 45), (60, 75), (70, 90).
A store’s supply/demand graph for ceiling fans is shown above. If the price is at the equilibrium point, how much money will the store make selling ceiling fans?
a.
$4,500
b.
$1,800
c.
$1,200
d.
$900



Please select the best answer from the choices provided


A
B
C
D

Answer 1

B

Equilibrium: set demand P = 75 − 0.75Q equal to supply P = 1.5Q − 15:
75 − 0.75Q = 1.5Q − 15 → 90 = 2.25Q → Q = 40.
Price P = 45. Revenue = 40 × $45 = $1,800.